With the threat of redundancy looming on the horizon for many of us it has never been more important to know your rights. We explain exactly what you are entitled to if you have been made redundant.
Redundancies are made when a company needs to scale down the number of employees they have on their pay role, either because they need to cut costs, because they are moving or changing operations or because they are closing down.
For you to be made redundant your job has to cease to exist completely; your employer is not allowed to take on someone else to directly replace you. However, even when an employer has made redundancies they are still able to recruit new members of staff to fill different roles in different areas of the business or in different locations.
Your employer is obliged, by law, to select the individuals who will be made redundant fairly. They are not allowed to base their decision on factors such as age, race, gender, disability, sexuality or membership/non-membership of a trade union.
The criteria an employer is allowed to use to select employees for redundancy include an individual's skill, qualifications and capability within their role, their conduct and attendance record, the nature of the work that is to be done by remaining staff and any other agreed procedure they have in place.
If you are made redundant your employer should explain to you why and how you were selected. If you believe you were discriminated against unfairly, you have the right to pursue your claim to an employment tribunal.
They should also make reasonable attempts to offer you suitable alternative employment within the company. If they offer you an alternative position you have the right to a four week trial period in this role to determine its suitability without forfeiting your right to Statutory Redundancy Pay.
Before making any redundancies your employer is obliged to notify the workforce of their intentions in writing. They need to explain:
Your employer should also formerly consult either the individual members of staff that will be affected or, if more than 20 redundancies will be made, a staff representative or union official.
During the consultation process they will need to discuss alternatives to redundancy and show how they are keeping the numbers affected to a minimum.
If more than 20 employees are being made redundant this consultation needs to take place at least 30 days before any notice is given, for instances where more than 100 staff will be made redundant this is extended to 90 days.
If you are notified that you are to be made redundant your employer has to either adhere to the notice period set out in your contract of employment, release you on paid 'gardening leave' or award you pay in lieu of notice (whereby you receive a payment from your employer instead of working out your full notice).
If your contract does not specify a notice period then Statutory notice should apply, this is as follows:
The amount of remuneration you will receive from your employer will depend on a number of factors including:
If you have been working for your employer continuously for more than 2 years you will at least be entitled to Statutory Redundancy Pay (SRP). This is currently capped at a maximum of £13,920. You will not need to pay tax on any amount you receive as SRP that is less than £30,000.
Statutory Redundancy Pay is calculated on the following basis:
The current maximum weekly wage covered by Statutory Redundancy Pay is £464.
You can use the calculator on the Gov.UK website to work out whether any redundancy pay is owed to you.
It may be that your employer is willing to offer a redundancy package above the Statutory Redundancy Payment. This should be discussed in your consultation meeting and you should request a copy of the offer in writing. It is worth bearing in mind that anything paid above and beyond any Statutory Redundancy Pay you receive will be subject to tax and National Insurance.
Your rights - and the company's responsibilities - if it goes into administration are sightly different. Read our guide: Employee rights during Administration for what you can expect, and what you may need to do to recover lost pay and any redundancy.
If your employer is made insolvent or is unable to pay your redundancy entitlement for some other reason then you will be able to claim partial remuneration from the National Insurance Fund.
However, you will first need to write to your employer within 6 months of you being made redundant formally requesting any outstanding payment owed to you.
If they still do not pay you will need to download and complete the Redundancy Claims Form from The Insolvency Service and either send this to the Redundancy Payments Office or to the insolvency practitioner handling your former employer's case if you have been instructed to do so.
Once you have been made redundant and are working your notice your employer is obliged to give you reasonable time off to look for another job and to arrange training that will help you find another job.
If you need to start a new job with a different company before the end of your notice period the best thing to do is to talk to your employer as they may be willing to release you without docking your redundancy pay. Bear in mind that if you leave without their permission, they are entitled to reduce the amount owed to you.
Firstly you should raise your concerns with your employer or with a representative such as a trade union official. If they are unable to resolve the situation then you may need to issue a formal complaint through your employer's grievances procedure.
If you need more information about being made redundant or advice regarding unfair dismissal you should either contact ACAS (the Advisory, Conciliation and Arbitration Service), the Citizens Advice Bureau or the Labour Relations Agency.
my boss reduced my hours less than a year ago now he is making me redundant what does he have to pay
They pay you based on your last 3 months salary.
I am in the middle of being made redundant now, i have my letter, notice and redundancy package all in hand, but now another member in the same department but a higher position has left so i have been offered his job, does this mean I wont be made redundant any more, or should I still take redundancy then re apply for this position? what is the correct procedure?
That's really positive news TRB88. I would suggest you speak to your employer about the correct protocol here. I'll keep my fingers crossed it all works out ok for you.
hi i have just been made redundant from a large builder's merchant. I was the only person in the branch to be able to plan and design kitchens. Please can you let me know what happens if my ex-employer takes someone on to plan kitchens?, and whether it makes a difference if they are an internal or external person.
I am currently under a 90 day consultation period for redundancy, I applied for a job in a different division within my company, I am over qualified for the job and have all of the essential criteria they are looking for. I also have all but one of the desirable criteria they were looking for, plus they stipulated that you needed to have 3 years business experience, which I have as I have been with them for over 5 years. I found out that I did'nt get the job, There were 5 positions. 2 have been offered to external candidates and the others to internal applicants, non of whom are on the risk register for redundancies. As this job was suitable for me and they have not given me it they are effectively making me redundant for the sake of it. I am not aware that the recruitment team new I was on the list as it was'nt mentioned at interview but they know the division I currently work in so they should have realised. Are they able to employ from outside sources when they are making people redundant that are able to do the job? I know the guidelines state they have to make reasonable attempts to find alternative roles, but it seems to me they have not done this.
thanks for any advice.
I am being made redundant, I have worked full time for 13 years and part time for the past 3 years due to having my son. They are basing 16 years redundancy on my part time money. This seems unfair and surely should be calculated on my overall service?
it is very unfair, the company i work for is going into administration, and i will get very little for my seven year service there as i have - just 4 weeks ago, returned part time after maternity leave. it's not fair, they should consider the length of time served full time but unfortunately for grafters like you and i - it saves them money if they base it on your current wages. :( i could go back full time before this happens, but you cannot put a price on losing time with your child so its a no no for me :( xxx
There are 2 of us being made redundant, i have been offered Contractual redundancy pay but not statutory even though i have been there more that 2 years, she has been offered Contractual and has been there less than 2 years, should i be entitled to statutory and contractual redundancy pay.
I've been made redundant my company has closed down I'm getting 9 years redundancy from the goverment and 9 weeks notice in my 9 weeks do I sign on because they will take it out of my final notice pay anyway
Help please! I was made redundant 3 weeks ago. I was told I could leave that day. I still have not received any paperwork confirming terms and that I will be receiving 3 months pay. The compnay is nationwide and solvent. What should I do/what are my rights?
How long after redundacies have taken place can more redundacies happen?
I have just been made redundant as the company I worked the last 12 years for has gone into administration. I have been told from a workmate that if I find a temporary job that some of my redundancy pay could be taken back off me, is this true?
Hi,I have been made redundant after 12 years and was given less then a weeks notice.the company has not got bust just moved to home,they have offered my 1 mths notice pay and hardly any redundancy money saying cant afford to pay money owed. Is there any help out there or ideas what to do.
Hi mike, really sorry to hear that. I'd suggest speaking to the Citizen's Advice Bureau because they should be able to explain your options. Do hope you get this sorted out and find another job soon.
Hi I'm currently off sick from work at the moment and in that time i was notified my everyone in department has been made redundant. The problem I have now is I was going to hand it my resignation letter as I've been ill a lot this year and my mum recently hurt her leg so she needs help doing things. I have 2 weeks holiday left which I was going to us as part of my 4 weeks notice. I am going to inform them i can only give 2 weeks because of my situation. What do I do now??
We have had a letter from the Administrators informing us that we are in Administration, but have not received a letter to inform us that we are in the 90 days consultation period yet. Are we able to take paid time off for interviews now, prior to receiving that letter?
my location and contract (only due to location details exactly thwe same) has changed whilst im working, but i have been employed by the same company for 2 years?, Does this count as 2 years?
I've "unofficially" been told my Company is closing in April '13 and that I'll be made redundant....Where do I stand as I haven't actually had anything in writing?? One of the silent Directors in the Company has told me and also my General Manager "unofficially".
I have been made redundant from a company I worked for 15 years they have gone into administration! If I get another job within my 12 weeks notice in lieu will I receive that payment or not? Please help thanks
Mine's a bit of an odd one. My boss notified me that I was being made redundant via text message whilst he was sunning himself in Antigua (I know, nice guy eh?). Fair dos I've had three months' notice, however he's made that three months very difficult for me and has appeared to go out of his way to hinder my efforts to build a new income after I finally leave. I guess the obvious thing to do is keep my trap shut and leave gracefully, but his attitude has really riled me - do I have any grounds to maybe take him to some kind of tribunal? Doubly annoyingly is I've been there for just under two years, so no chance of getting a redundancy payout, grrrrrrrrrr!
I am on garden leave , i was advised that I would receive 1 months notice on full pay for the garden leave and any holiday would be paid in lieu .
As this is over Xmas i will not receive notice pay for the 24th dec /27th dec / 28th dec as I havd proposed to take these as holiday .
It seems unfair that my employer can reduce the amount of overall monies paid because i had requested three holiday day earlier on in november .
any thoughts ?
I have worked in the accounts office of a hotel for 9 years. My position no longer exists so redundancy has been discussed with me. I have, however been offered a 4 week trial period in another position at the hotel. This position is in housekeeping. I would like to know if it is correct that by law I have to remain on the same hourly rate that I was on in my previous job? My boss has told me that if after the trial period I accept this new position then my rate will go down (which for housekeeping is minimum wage) Also, I have heard that if a new position is offered it must be as similar to the previous position that I was in. Accounts and housekeeping are not similar!I would be most grateful for some advice x
I was made redundant from my Nightshift post from a high profile supermarket. They offered me jobs over 200 miles away, totally unacceptable in my opinion, which i refused. I was made redundant around 2/3 months ago and have found out they have started the nightshift again. I know this as I phoned up during the nightshift hours and the nightshift manager answered. Is this allowed? and how long should there be between redundancies and the post being up and running again?
i have recently been made redundant - the problem is, i was on sick leave due to work related stress. Where will i send my sick note now
my company has just announced that there will be redundancies, 2/3 of the workforce. I am one of the longest serving employees and i have a very good attendance record, however due to my circumstances at home, (i am seperated and my husband has refused to pay anything towards our joint mortgage since he left so i am struggling financially), i would benefit from being made redundant. I have calculated the minmum they can give me and this would cover 6 mths wages and leave me some to clear some debts, giving me time to find another job. I am 42 and I don't want to take alternative employment within the company as i don't believe i can go any further so i would prefer to start afresh somewhere new. What is the best way to approach my employers abput this situation without putting any payments to me at risk ?
This site has been very helpful. I now know where I can find more advice on redundancy and employment rights. Last week my husband employer employed 2 new members of staff doing my the same role has my husband and this week my husband has been made redundant despite years of service.?My husband asked what happended to last in first out and his employer has told him they would be breaking the law if they implemented that rule. Does not make sense?
I received a letter of Potential Redundancy, although it stated in this letter that my job as a manager was being made redundant, last year on my birthday I reached retirement age or what was, but no retirement age now and my new boss asked me what plans I had, when I said I had none and was intending to stay on, he remarked there would be a lot to learn, but never told me what, hence 2 months later this letter, so I think he clearly wanted me to go one way or another, also it has been made difficult for me through out the year as files I use for my job were hidden in another drive, with out telling me, when I mentioned this at the consultation he said he did not know anything about it then suddenly the next day I had an email stating that I am entitled to know where they are now located and has given me the rights, a bit late now!
my Company is moving to another location but I am not able to get there as the cost would be too high to travel to the new location. Am I entitled to redundancy.
i was made redundant in oct after 17 years service when the company ceased trading it hasnt been liquited but the owners have disappeard and are not responding to any correspondence i have a date for an industrial tribuneral hearing but they havnt even replied to that how do i stand with reduncy and salary i am owed
I and a colleague were asked to attend a meeting last October and given 12 weeks notice and told that due to the way the company was changing the way they carried out their work that our positions had become redundant, due to the actual stress I was under I actually did not attend work for the majority of that period (I did have certificates from Doc) and my last day was 26th December. My company paid me the correct amount for my 7 + years service and in January I managed to gain position within an other company in the same field.My new company has been asked to carry out some work for my previous company and I may be the person required to cover the work. Is this legal and can I do anything about it?
I have taken voluntary redudancy a few months ago because my job was changed. I have noticed my company are advertising for staff it is a different role to the one I had previously but am I allowed to apply after I have accepted redudancy for the job I had.
My job is transferring under TUPE legislation. I have only been with the paid present company for 16 months. If I am made redundant will I be paid for 90 days consultation period ?
I have worked for the same employer for thirty years. My employer has recently created a new position for me and a colleague. I'm not sure if this position is viable, long term. We have now been in this role for 6 months. What is my redundancy rights should my employer say the new role is not working out and I have to go back to my precious role.
I am due to be made redundant soon, but they haven't given us a date yet, or told us that we are being made redundant just that our store is closing(but we all know we are being made redundant as there is no where to put us), I have been offered a new job with a different company but they want me to start soon, I don't want to loose my redundancy pay, It's being payed by the goverment as my company can't afford to pay. I don't know what to do, can i work both jobs and still get my redundancy pay??? my current manager is willing to have me work around the hours of my new job! or does having 2 full time jobs at same time cause major problems!
I have been working at my employers for a year now and found out this morning I am to be made redundant. Because I haven't been there for two years I'm not entitled to redundancy:( It was my currently employer that approached me for this role a year ago and I left a stable role to peruse this opportunity. Am I legally entitled to anything? They assured me in my interview when I asked about redundancies (although I do not have written proof) that this role was safe, they said "we don't have a crystal ball but no redundancies are on the horizon. If a restructure does take place, the role will be safe because it is an integral part of the business". However, I have subsequentally found out this restructure has been planned for over a year. I wondered if anyone could offer me advise, this seems really unfair!
my boss is thinking of making one of the two members of staff redundant. She hasn't made her decision as to which one she will fire but she told everyone in the office (in private, not in public) that one of the two will have to go shortly. Can she do that? Discuss other's business with junior members of staff? The two to-be-made-redundant don't know that we know. Very awkward.
my boss is thinking of making one of the two members of staff redundant. She hasn't made her decision as to which one she will fire but she told everyone in the office (in private, not in public) that one of the two will have to go shortly. Can she do that? Discuss other's business with other members of staff? we're not part of the decision making process, we are junior to the both ladies and the two to-be-made-redundant don't know that we know. Very awkward.
I'm hoping someone can help me.
I have worked for my company for less than 2 years but told in writing I would receive "1 months pay in lieu of notice" if I was made redundant.
After a restructure of my company and subsequent redundancy process, I was successful in getting one of the newly created jobs. With the new contract I signed came in writing the fact that "There is a trial period of 8 weeks for this position, where by you are able to revert back to the redundancy process if you find the new position is not suitable". When I received this, I verbally checked with my General Manager that this meant I could decide to take my "1 months pay in lieu of notice", which she confirmed was the case. She confirmed that she said this again this morning when we spoke. I also spoke with her predecessor and my former General Manager, who dealt with the initial consultation, who told me the same.
Now, within this 8 week trial period, I have decided that I would like to revert to the redundancy process, and take voluntary redundancy. I have now been told that I do not have the right to my "1 months pay in lieu of notice", and it was a mistake that I was told it would be available to me.
The only thing I don't have in writing is the fact that when referring to the trial period "the redundancy process" includes voluntary redundancy. As I know voluntary redundancy was an option for me initially, do I have the same rights now as I did then? Legally, because it was offered in writing previously, does my employer have to honour what was offered to me (1 months pay in lieu of notice), despite the fact they were not obliged to offer me this initially?
If anyone can point me in the right direction I would be most grateful.
Hi adw, I'd suggest speaking to the CAB because they should be able to look at your initial contract and advise you how it holds up with your new position.
Here's the link to the employment info on their website: http://www.adviceguide.org.uk/england/work_e/work_rights_at_work_e/contracts_of_employment.htm#changes_to_contracts
Hello, hope you can help. I was made redundant a few weeks ago from a tv show. At the time I was offered a junior role which paid over £200 less a week or redundancy money, so I took redundancy. Nowadays few weeks down the line, it seems I've been replaced by someone doing exactly the same role under the junior job title I previously refused.
Is this an illegitimate redundancy? As my job role was downgraded and I refused to take it opting instead for redundancy money, do I have a case for unfair dismissal?
Sorry to hear that me63. In general it's the case that you can't be directly replaced when you're made redundant so I think it would be worth speaking to the CAB who should be able to look at your contract/redundancy terms with you.
i have been told today that both myself and the other maintenance person i work with are to be made redundant on 21st May.We are the only maintenance staff at the company. The company have given our maintenance duties to another company who have taken over as landlords for the company.I was under the impression that if a job was made redundant that the company could not have my duties covered by anyone else for a set period of time.Is this true?
I was told that i would be made redundant by the end of last November, but due to the company being behind schedule i still have not been let go and it has been nearly an extra 6 months now. I have been looking for work because every time i ask my manager says 'oh yes it really should be happening any day now.' I have asked to be let go several times and each time they say no because until the changes to the company happen, they need me, but there enough other staff to handle it. But I just want to leave now instead of being in a job with no future, I've been in limbo for months now thinking 'will i go this week? Shall i go to job interviews?' and the fact is i have found a job i have a good chance at getting, but at this rate i'd have to quit to take it. Is a company allowed to drag out a redundancy period on and on? Do i have any rights to demand to be let go??
That sounds really unfair kirstyleaves. I'd suggest you speak to the CAB because they'll be able to go through all the details for you and provide you with advise on that basis. Their contact details are on their website: http://www.citizensadvice.org.uk/
i have been been made redundtant and have been givern 8 weeks garden leave. can i still do my oart time job of 4 hours.?
I was offered a new role within the company (albeit minus some money and a car) which I initially accepted. I am due to start this new role on the 1st July however I havent received a new contract or a new set of T&C's. I have also been successful at interview for another position at a different company with a potential start date of August.
As I havent received a new contract or T&C's and have only verbally accepted the position during the consultation process can I now turn down the role offered and take redundancy?
My boss is going to make me redundant because its going down hill will I get redundancy money
My boss asked me to look for alternative employment....said things weren't working out. I had turned down his sexual advances.Now they have advertised and have offered the position to a new employee. Where do I stand? I have no contract of employment, have had no written correspondence in this regard, I have been here for two and a half years.
my husband has been made redundant and the company he worked for has told him that they plan to pay his redundancy in installments which mean he wont get his full package for 8 weeks, when he contacted the boss he was told that is how they do it so it is tough, he never signed anything and was not informed in person do he have any rights
Am i entitled to a letter if we have been advised that we are to be made redundant?
I've worked in my new job almost 2 months, I have now been told I'm being made redundant, I understand I'm not entitled to redundancy money, which is fine, but can I claim certain benefits after being there only 2 months? I've got an 8 yr old to support.
I was dismissed after 7 yrs & I was paid 7wks (1 wk - 1 yr), pay for holidays not used, I opted to work my 7 weeks notice, but my employer told me there was no work for me. H.R dept have told me you dont get service pay & lieu of notice pay. Its either one or other, so wont pay me 7 weeks lieu of notice pay. Are they right in what they are telling me?
Hi, my company has announced that they are planning to make 1 of the 3 engineers redundant. They have carried out the selection process and I have a very strong feeling that it is going to be me that is made redundant. From what one of the other 2 engineers have said to me I am fairly certain that the other 2 engineers have been told they are safe, and yet the final meeting is to be held in 2 days time. Is this fair?
my company needed to make 14 redundancy but managed to place 7 in other departments and only made 7 (all 14 with the same ability's) now 1 of the 7 that got moved doesn't like it during his 4 week trial and is taking the redundancy. should the position be offered to me now??
we curently get paid on a 4 weekly pay packet so we have 13 payslips a year,also at the moment if we get made redundant we get a 4 weekly pay packet for every year you have worked .If the firm decide to go to the government rules ie a week for every year does that start from when it starts or do you lose your amount and get a week from when you started ?
I am being made redundant and had a verbal warning on the 25th of November but only got my letter today the 6th December, is this fair or should my redundancy start the day I sign a letter
I've just been made redundant and my employer told me on the 25th of November but I have only just got a letter stating that I'm getting made redundant today the 6th of December, is this right or do I have to sign it the day I get made redundant
I have been made redundant after 3 years but a temp as taken my job what rights have I got to this .
My job was made redundant at the beginning of November for which i took a step down to avoid redundancy. a few weeks later i was told that they messed up and are to for a trial period bring the job back but are not sure of the job title yet. I was also told that they were bringing someone else in to do this job for 3 months and then after the three months review and see if it will be permanent. Can they just bring someone in after few weeks of me stepping down
My boss owns a jewellery kiosk which is part of a large jewellery store and he has just gone on holiday, and me and 5 other members of staff got told to go home before end of our shifts for stocktake.The next day we all got a phone call from the store we are part of to say dont bother.coming back in because we are closing the kiosk. And that was it.We have had no notice or no idea what is going on.According to a lady from head of the store our boss has known about this for a while but didnt tell anyone. Things just carried on as normal.We have all tried emailing and phoning him but getting no response as if he doesnt want to take responsibility.There must be something we can do?
I work nightshift but it is coming to an end. My work is making employees redundant . I am lucky that I will go back on days. Am I entitled to voluntary redundancy
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