Redundancy -What to expect from the process
I set out below advice for employees on dealing with the dreaded redundancy notification.
1. Being notified – what to expect: You may be called into an impromptu meeting, usually with your line manager and a member of the HR team. It is customary not to give much notice of this first meeting, as employers usually want it to be brief (the period before the employee has been able to get used to the idea is the most awkward). You should be given a letter which: (i) sets out why your role is at risk of redundancy; and (ii) invites you to a consultation meeting. This is known as the “at risk” letter. At this stage, you are only at risk of being made redundant and no formal decision will usually have been taken (although employers will sometimes dispense with a full redundancy procedure if the employee in question has less than two years’ service).
2. The purpose of the consultation meeting:
This is your time to ask questions such as:
• Why was my role selected for redundancy?
• What selection criteria, if any, were used in determining who should be placed at risk? If you do not perform a unique role, your employer should have used objective selection criteria to determine who should be put at risk of redundancy. You are entitled to review your scores against these criteria, but employers are normally reluctant to disclose the scores of other employees, at least without anonymising these.
• What alternatives were considered instead of making my role redundant?
This meeting should also provide you with an opportunity: (a) to find out more about the proposed re-organisation, including what other roles might be available and which roles will have which responsibilities; and (b) to ask about any suitable alternative vacancies available at your employer or any associated employer. You should have a list of questions prepared in advance of any consultation meetings, as well as any suggestions you have on how your redundancy might be avoided.
After the meeting any points you made should be considered and you should be given the option of applying for any suitable roles you have said that you are interested in. The formal decision to make you redundant should only be taken after these things have happened and will usually be confirmed at a second consultation meeting.
3. Who can I bring? Employees are only legally entitled to be accompanied by a colleague or trade union official to the final meeting described above. However, many employers allow employees to be accompanied at each stage of the redundancy procedure, so you should check what your employer’s policy is. You have no right to legal representation at these meetings.
4. Take notes: Take notes during any meetings, as what is discussed could assist you later. For instance, your employer should not state that you will be made redundant until the end of the procedure. If it does, you may be able to argue that the decision to make you redundant was pre-determined and that the procedure followed was a sham. This would render your dismissal unfair, if you had more than 103 weeks’ service at the point when your employment formally terminated.
5. What will you receive? If made redundant, you will be entitled to a statutory redundancy payment calculated by reference to your age, length of service and weekly pay, although the weekly pay for these purposes is currently capped at £479. You will also be entitled tyo your notice pay (although you may be asked to work this out) and to any other contractual entitlements due to you, such as accrued but untaken holiday pay. Some employers offer enhanced redundancy packages, although they usually require employees to enter into a settlement agreement waiving any claims. For such an agreement to be legally binding, the employee must first obtain advice from an independent lawyer on its terms and effect. Employers usually pay a contribution towards the cost of this.
If you unfortunately find yourself receiving an at risk letter, please feel free to contact me as I have a wealth of experience in advising on redundancies and settlement agreements.
This material does not give a full statement of the law. It is intended for guidance only and is not a substitute for professional advice. No responsibility for loss occassioned as a result of any person acting or refraining from acting can be accepted by Fudia Smartt or any other organisation which may publish this article.