Redundancy solicitors in Solihull
The process for making individuals or groups of individuals redundant is very strict. Our employment law team will help to advise on the steps to take to avoid retaliatory legal action from employees.
Making employees redundant is never an easy decision but may be the only way forward. Our employment law team will guide you through this difficult time to ensure procedures are observed and employees are treated fairly.
Redundancies are an unavoidable occurrence for many businesses. Whether undergoing a merger or restructure, there may be some roles in your company that are no longer required. In this instance, these employees should be allowed to apply for roles elsewhere in the company. If they are unsuccessful, redundancy may be required.
If handled incorrectly, an employee could take their grievance to an employment tribunal to help settle their dispute. If they feel that they have been unfairly chosen for redundancy, they could have a claim against your company. We will help to avoid this by advising on the best possible route forward as you navigate the redundancy process.
Making employees redundant
There are a few reasons you can make an employee redundant. These include:
If the entire business is closing
If the business is relocating or closing one or more offices
If the business needs change and there isn’t enough work for employees
There is a five-step process that must be observed when making employees redundant. By following these steps, you can avoid costly and nuisance tribunal claims. Even if you have grounds to make an employee redundant, they could make a claim against your company if the redundancy is handled incorrectly.
Throughout the redundancy process, we can act as an extension of your company, ensuring you always remain on the right side of employment law. We can help with preparation, selection, individual consultation, appeals and termination. By choosing Pearcelegal as your partner in employment law, we can protect your business and ensure your employees are treated fairly. Get in touch to find out how our employment team can help.
Frequently asked questions
What is the minimum redundancy payment?
Only employees who have been with the company for two years are entitled to redundancy pay. This is calculated as half a week’s pay for each full year of employment that the employee was under the age of 22, one week’s pay for each full year the employee was aged between 22-41 and one and half week’s pay for each full year the employee was over 41. The length of service is capped at 20 years.
What is the minimum consultation period for redundancy?
If you are making up to 19 redundancies, there are no minimum periods for consultancy. For 20-99 employees, the consultation should last 30 days before any redundancies take place. For more than 100 redundancies, the consultation should last 45 days. In limited circumstances these time periods can be shortened but you should ensure you have the correct legal basis first.
What are the stages of redundancy?
There are five stages of redundancy. These are preparation, selection, individual consultation, appeals and termination. It is important to have a detailed and robust redundancy procedure in place so that all employees are treated fairly at each stage. This will also reduce the risks of mistakes and potential claims for unfair dismissal.
How quickly can you make someone redundant?
An employee is entitled to one week’s notice if they have been with your company for one month to two years. After two years, the notice period extends by one week for every year of service for up to 12 years. This however can be overridden by terms within the employee's contract which may provide for longer notice periods. Failing to follow any longer contractual notice period would be a breach of contract.
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