Employees
For employees the prospect of redundancy can be worrying and stressful, particularly when it is the result of serious difficulties or failure of their employer. However, circumstances can vary widely and redundancy may on other occasions be a result of factors such as changes in corporate plans or direction by otherwise successful organizations. Statutory Redundancy pay is payable to employees dismissed by reason of redundancy. Statutory Redundancy Pay varies according to your age, weekly pay and and length of service (although upper and lower limits were removed in the light of age discrimination legislation). If your weekly pay is more than the current maximum limit of £380 (October 2009) then the statutory calculation will be limited to be based on that maximum amount. You can check entitlements here. If your employer is going to make more than 20 redundancies in a 90-day period then they are obliged to consult with employees' representatives (often trade union) at least 30 days in advance. If more than 100 redundancies are planned then they must consult at least 90 days beforehand.
Some employers who are downsizing or re-focusing their business may choose to pay more than the stautory minimum, and redundancy pay is currently tax-free up to £30,000. In some cases this can mean that some employees may receive quite substantial redundancy settlements, in which case the termination of employment can lead to new opportunities rather than financial problems. It is important, therefore, when you are faced with redundancy to establish what your rights and entitlements are, and what level of settlement you are likely to receive from your employer. Consult with your representative, if any, and make sure you know what all the relevant amounts and dates are going to be.
When it happens, redundancy is unavoidable - you are not leaving by choice or for any other reason than your post no longer being required. So, although it may be difficult, it is important to make the best of the situation, and look at other possibilities it might present for other activities, new employment, re-training or perhaps a complete new start. Perhaps it will change your lifestyle, a chance to make more of a business idea, a hobby or a sport. Included below are some links to websites which may help to clarify some issues and possibilities facing employees who may be made redundant.
If you are unsure about your situation, feel you have been unfairly treated or are facing problems related to redundancy then you should seek professional advice. Your Trade Union Representative or local Citizens Advice Bureau may be able to help. If you have legal issues then you should consult an Employment Lawyer.
Some resources about redundancy for for employees:
Calculators etc :
PEAR COMPUTING SYSTEMS - Statutory Redundancy Pay Calculator
BERR (Dept for Business Enterprise and Statutory Reform) Redundancy Pay Calculator
Employment Law :
UK Statute Law Database - Employment Rights Act 1996 (c. 18) Part XI Redundancy payments etc.
emplaw.co.uk Employment Law Guide - Redundancy
Law Society - Redundancy Practice Note - from 19 December 2008
Forms :
The Insolvency Service - Advance Notice of Redundancies - HR1 Form (PDF)
General Resources:
ACAS Advice - Redundancy
ACAS Advisory booklet - Redundancy handling (Booklet Summary)
BBC News - The Pitfalls of Redundancy
BBC News - How to Cope when your Firm goes Bust
BBC News - How to Cope with Recession - Negotiating Redundancy
BBC Raw - Coping With Redundancy (video) ("Skills for Everyday Life")
BERR (Department for Business Enterprise and Regulatory Reform) - Redundancy
Chartered Management Institute - Redundancy Support Service
CIPD (Chartered Institute for Personnel and Development) - Redundancy
Citizens Advice Bureau - Adviceguide - Redundancy an Introduction
Citizens Advice Bureau - Adviceguide - Redundancy (PDF)
Citizens Advice Bureau (N.Ireland) - Surviving Redundancy
Citizens Advice Bureau (N.Ireland) - Employment Fact Sheet : Redundancy
City Redundancies - City Redundancy Packages (City of London)
City Redundancies - Understanding Redundancy
Credit Action - Redundancy A practical guide for employees
Directgov - Being Made Redundant
Guardian Money - Redundancy
HR Zone - The cycle of grief: The key to handling redundancy
Labour Relations Agency - Redundancy Q & A
Mirror.co.uk - Advice - Redundancy : What to do if it happens to you
People Management - Employment law at work: Redundancy
Personnel Today - Redundancy Tracker and UK Job Losses
Redundancy Help (www.redundancyhelp.co.uk)
Scottish Government - Public Service : Severance, Early Retirement and Redundancy Terms
Times Online - The Bright Side of Redundancy
Working Rights - Redundancy
Find Help :
Citizens Advice Bureau - Find a local office - SCOTLAND
Citizens Advice Bureau - Find a local office - ENGLAND and WALES
Citizens Advice Bureau - Find a local office - N.IRELAND
TUC
TUC - Details of Trade Unions in the Britain
TUC / Worksmart - Facing Redundancy booklet
PLEASE NOTE : The information on this site is provided as-is as a focus for resources concerning redundancy issues. We cannot provide any legal or advisory information on specific cases, so please DO NOT contact us for such advice. If you require further assistance with your own circumstances then you should take professional advice from an appropriate source such as an Employment Lawyer, Trade Union, Citizens Advice Bureau or other agency competent to provide such assistance.