With the furlough scheme coming to an end 30th September, many will face the possibility of being made redundant. This is why at Citizens Advice in West Sussex (North, South, East) we want to make sure you’re aware of what rules your employer has to follow.
As a charity, we understand the emotional implications when facing redundancy, which is why we want to equip you with some top tips regarding your rights when going through this process.
Our Employment Specialist, Martin, explains your rights:
You’re entitled to a consultation with your employer if your position is considered to be at risk of redundancy. This involves them speaking to you about why you’re being made redundant and allowing you to suggest alternatives to the possible redundancy.
They must hold a group consultation if 20 or more redundancies are being made at the same time, here the collective redundancy rules apply.
Selection for redundancy
If there is more than one person with your job title, your employer must use a fair and objective way of selecting you for redundancy. This is normally using selection criteria and awarding points for each item. You should be fully informed of this process and what your own score is. The selection must not be influenced by age, sex, gender reassignment, sexual orientation, race, disability, religion etc. It might otherwise be found to be discriminatory and an unfair dismissal.
Your employer can make you redundant without having to follow a selection process if:
- You have less than two years service
- Your employer is closing down a whole operation in a company and making all the employees working in it redundant
Your employer may offer you an alternative role which if you ‘unreasonably’ refuse, may put your redundancy payment at risk.
Redundancy pay and accrued holiday pay
You’re entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for two years or more. For each full year you’ve worked for your employer, you get:
- Up to age 22 – half a week’s pay
- Age 22 to 40 – one week’s pay
- Age 41 and older – 1.5 week’s pay
The maximum is 20 years service. Do check your employment contract since this may entitle you to enhanced redundancy pay. Redundancy pay is normally tax free up to £30,000.
When you are made redundant, you are also entitled to any holiday pay you are owed for untaken holidays.
Notice pay or pay in lieu of notice
You are entitled to notice pay in addition to your statutory redundancy pay. You should receive 1 weeks pay for the first 2 years of service and then one additional week for each completed year up to 12 years. Your employer should either:
- Pay you normally during the time you work your notice. Your notice pay is based on the average you earned per week over the 12 weeks before your notice period starts. It must not be based on any lower furlough pay.
- Pay you in lieu of notice. This is where your employer terminates your contract without notice but pays you all the notice pay as you leave. You’ll pay tax and NI as normal.
Check your contract since you may be entitled to enhanced notice.
Accepting a new job while under notice of redundancy
You might want to leave your job before the end of your notice period – such as if you get another job. If you want to leave early, you should first ask your employer, in writing, if they agree you will still receive your full redundancy.
Don’t leave early without confirmation from your employer. Otherwise you will have resigned without giving correct notice and may lose your redundancy payment. In addition, the employer may withhold some of your normal pay.