Redundancy need to knows ….
If you’re a business owner in the UK, understanding the law surrounding workplace redundancy and being aware of your obligations to employees can be daunting. To ensure that you protect your business and your employees, it’s essential to understand the rights that exist in relation to redundancy and the procedures you should follow.
1. What is redundancy?
Redundancy occurs where an employee’s job no longer exists, either because of a business closure, changes in the workplace environment, or a decrease in demand for the employee’s job roles. Employees who are made redundant are usually entitled to redundancy pay – unless there were exceptional circumstances, for example, if the employee’s dismissal was due to misconduct.
2. What is the redundancy process?
When making employees redundant, employers should take certain steps to ensure they comply with UK employment laws. This includes giving employees written notice of dismissal, providing them with all necessary information, offering alternative employment to at-risk employees and involving appropriate third parties – such as a trade union representative or extra advice, if necessary. You must also keep a record of all decisions made during the redundancy process.
3. What are the legal requirements?
When an employee is made redundant, they are entitled to certain legal rights. This includes the right to claim a redundancy payment, notice of dismissal, extra time of service and Statutory Redundancy Pay. It is important to be aware of all.