REDUNDANCY PAY OR UNFAIR DISMISSAL?
Redundancy
Our panel solicitors are experienced in all matters surrounding employment law, including helping employees to determine proper redundancy pay calculations. If retained, they will either begin negotiations on your behalf concerning possible compensatory settlements or, when necessary, make applications for dispute resolution to the Employment Tribunal.
Calculating redundancy pay
If your place of employment goes out of business, or your services are no longer needed due to a reduction in the workforce, you are entitled to redundancy pay, provided you have worked for your employer for at least two years. Your redundancy pay is dependent on your weekly salary, length of employment and age. Note that redundancy pay is not taxable.
Redundancy pay is determined according to the following formula :-
- half a week’s pay for each complete year of work below the age of 22
- a full week’s pay for each complete year of work between the ages of 22 and 40
- a week and a half’s pay for each complete year of work above the age of 41
There is, however, a statutory cap on the amount of redundancy pay an employee can receive.
Unfair dismissal
Occasionally, if an employer believes they may be facing claims of unfair dismissal, they may try to force you into a redundancy situation which can be much cheaper for the employer. If you feel this is the case in your situation, and that the redundancy is a sham, it is crucial that you obtain legal advice for matters concerning reinstatement and/or unfair dismissal damages.
Offer of alternate employment
If economic circumstances lead to your company’s restructuring and, as such, your position is no longer available, your employer might offer you a different position within the organisation. You may refuse this position if it “causes serious disruption in your life,” or you may take up to four weeks to make a decision to resign, and you will still be eligible for a redundancy pay claim.
Compromise agreement
Often, when an employee has been terminated, an employer will request the signing of a document known as a “compromise agreement” to make sure all terms of the dismissal are finalised. Employees are legally required to receive legal advice from a qualified solicitor prior to signing any such agreement, and employers will almost always pay the fees associated with obtaining this advice.
Free legal consultation
Specialist employment law solicitors deal with redundancy awards. They operate the no win no fee scheme and only receive payment if you win your case. If a settlement is reached in your redundancy claim, the fee is a previously agreed percentage of the damages, so you never need to worry about surprise charges. Call our helpline or send an email now for a fully confidential, risk-free consultation with a redundancy lawyer, without charge and without obligation.