Before you look at your redundancy compensation and totally get excited about it, you should not forget to ask yourself if the redundancy has been made appropriately. You and every employee in the UK are covered by an employment law that protects your right as a productive member of the labour force.
If you have just have been made redundant by your employer, it is a healthy trait to face the job termination and move on. Like most employees who have been subjected to this process, you probably may be excited about your redundancy compensation. There are many reasons to look forward to the payout. You may use the money for significant investments or for enlarging your savings account.
Set aside your redundancy compensation package offer for a while and try to look if the employer has used an objective and fair way in choosing you as a casualty for redundancy. The decision to make your redundant must be based on fair selection. It must not have been based on the employer’s gut feel about who he wants to retain and who he wants to let go.
Before You Look at Your Redundancy Compensation, look at the method of selection. The employer should have followed a method for deciding about redundancies that has been agreed upon with an active trade union. The employer must be able to show you that the decision was fair, regardless of the method used. The most common reasons or basis for redundancy decisions are: disciplinary records, ‘last in, first out’ (newer employees are considered first for redundancy), staff appraisal (the use of skills, qualifications, markings, and experience as basis), and self-selection (in case there is voluntary redundancy).
Employers usually combine the criteria. The combination could involve the use of a point system to derive an overall score. Before computing for redundancy compensation, an employer could also ask an employee to reapply for another position in the company. These methods are among the ways an employer uses to decide who to choose for a redundancy. If you have decided not to apply for other positions in the company, you could expect your redundancy compensation. You could enjoy the job until the employment is terminated following a redundancy. You could volunteer to take the redundancy compensation by stepping up for a voluntary exit.
Before You Look at Your Redundancy Compensation, set aside your excitement if you are convinced that your employer has unfairly selected you for redundancy. In such a case, put your own appeal into writing, explaining what you intend the employer to do to correct the situation. You may file a case in the Employment Tribunal and apply for an unfair dismissal claim.
The employer may approach you to offer a compromise agreement so that you would not file for any complaint or claim regarding the redundancy. You may not be entitled to your redundancy compensation if you accept the offer but you certainly would receive a hefty amount of cash. Before you decide to take such an agreement, be sure you are properly guided by an independent employment law specialist.