It is your right to get a redundancy payment if your job has been dissolved due to business reorganization, a downsizing scheme, a takeover, or a shut down. Usual redundancy terms qualify an employee for such compensation if he or she has been continuously employed by the employer for at least two years. In the UK, redundancy terms are universal. That means the terms and conditions applicable are the same across various companies, though there could be differences regarding redundancy packages.
Among the different redundancy terms, details about computation of redundancy pay are often the most looked. The payout is dependent on your regular weekly salary, age, and length of employment. Take note that statutory redundancy payment is not taxable. However, there could be a limit imposed to the amount of compensation you could receive.
In general, you are entitled to a half week’s pay for every year of your continuous employment with the same employer if you are younger than 22 years old. You would get a full week’s payment for every year of continuous employment if you are between 22 years old and 40 years old. Lastly, you would get a 1.5 week’s pay for every year of employment if you are more than 40 years old.
Unfair dismissal could get involved in redundancy terms. Occasionally, some employers try to force specific employees into redundancy situation if they think they would be facing unfair dismissal claims. Doing so could be less costly for the employer. If you review the redundancy terms provided to you and you think the dismissal is a sham, you should hire an employment law specialist at once for guidance on how you could secure a possible reinstatement or unfair dismissal damages.
Under usual redundancy terms, there may also be an offer from the employer for an alternative employment within the company. The employer has the option to offer you another position within the organization if your post has been declared redundant. However, you have the right to refuse accepting the position especially if you think it would cause possible disruption to your life. You may opt to take up to a month or four weeks to finalize a decision whether you would resign. If you decide to take an exit, you would still be eligible for an appropriate redundancy payment.
In many cases, employers request the redundant employee to sign a compromise agreement. The document is written to legally make sure all important redundancy terms are finalized and closed. As an employee, you have the right to receive legal advice from an independent employment solicitor so you could make a more informed decision whether to enter into the agreement or not. You do not have to shoulder any cost. It is the employer’s duty to pay for any expenses and fees that would be incurred from hiring a solicitor.
Know and understand all the redundancy terms whether there is a compromise agreement offered or none. In any case, guidance from an employment specialist would be valuable and helpful. Choose and hire the best and the most reliable.