Your Legal Rights If You Are Made Redundant
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If you are being made redundant at work, you need to make sure that it for a genuine reason and the compensation you are getting is fair. That is why it is important that you know your legal rights if you are being dismissed for redundancy.
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The most common reason for redundancy is that the employer is looking for ways to reduce the number of employees. This happens when the business is closing down or the job you used to perform is no longer necessary because of improvements in the working process. However, if you are replaced immediately, it is not considered as redundancy. This means that you can get a larger amount of compensation.
Here are the three main reasons that employers cite for redundancy:
- The employer is stopping his business completely.
- The employer has ceased operations in the location that you were employed and moved to a new location.
- The employer does not need as many employees as before due to changes in the working process.
All the above reasons are considered valid and legal.
Redundancy normally occurs when an employer is looking for ways to cut costs and increase the bottom line. Given the present economic scenario, redundancies have become more common and widespread.
If the employer is going to be making 20 or more employees redundant in a time span of 90 days, he has to consult employee representatives to discuss which employees should leave. This type of redundancy is known as collective redundancy.
However, if the number of employees is less than 20, then the employer has to follow a certain procedure. He has to ensure that the employees are selected fairly. The employees should be warned about the redundancy and the employer should take measures to find out an alternative job or employment. In addition, the employer has the obligation to give you a notice and the correct amount in redundancy payment. However, the employer also has to find ways to avoid redundancy if possible.
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