Redundancy Solicitors
Redundancy legal advice for directors and senior executives. We will support you through the process and help you achieve the best possible outcome.
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Redundancy Solicitors
Navigating the dismissal and redundancy process can be complex for employers and employees. As well as being emotionally challenging for those being let go, employers can also find the process stressful and upsetting. Nevertheless, redundancies are a part of doing business, especially in an uncertain market.
- In the three months to January 2023, 94,000 redundancies were made in the UK
- In 2022, nearly 1 in 5 employers considered making redundancies in the year ahead
- The number of redundancy-related employment tribunal claims has increased significantly since the COVID-19 pandemic.
Whether you are an employee looking to make an unfair dismissal claim, or an employer seeking to defend against such an action, professional legal advice from a redundancy solicitor is essential to protect your best interests.
Do you require advice from employment law redundancy solicitors?
At Summit Law, we have a team of employment lawyers with all the expertise needed to guide employers and employees through the redundancy process and any redundancy-related disputes.
With a track record that speaks for itself, we’ve successfully helped hundreds of clients across a plethora of sectors, including financial services, banking, media, and technology. As such, we know what it takes to protect your best interests and your financial well-being.
To help you through the redundancy process we provide.
- Fast service. We deliver a swift and efficient service that focuses on resolving your redundancy matter quickly and effectively.
- Best results. We help you achieve the best possible results with unparalleled expertise.
- Expert advice. With a wealth of experience and a proven track record of success, we help you to navigate even the most complex legal challenges.
- Affordable funding. We offer a range of flexible payment options, including retainers, fixed fees, and hourly rates, to meet the needs of all our clients.
- Unrivalled client care. Our commitment to service excellence is demonstrated by our firm achieving the sought-after Lexcel Accreditation status.
Trust our team of redundancy solicitors to help with all your employment law matters, with tailored solutions to your specific needs. Contact our redundancy lawyers on 020 7467 3980 or complete the enquiry form on this page.
Types of redundancy
Voluntary redundancy
Voluntary redundancy is offered to employees. If accepted, the employee leaves their job voluntarily with an agreed redundancy payment. This payment is often more than they would be entitled to under statutory redundancy rules.
However, accepting voluntary redundancy can affect an individual’s right to claim certain benefits. Likewise, mortgage protection policies often exclude voluntary redundancy. So individuals should think very carefully before accepting any such offers.
Statutory redundancy
With compulsory redundancy, the employer decides who to make redundant. However, strict guidelines are in place when selecting employees for redundancy, and the selection process must be done fairly, without discriminating against specific individuals or groups.
An employer cannot use a protected characteristic (age, sex, sexual orientation, disability, race, religion, etc.) as a reason to make someone redundant. You can find out more about what is classed as unfair dismissal here.
Furthermore, once an employer has selected an individual for redundancy, they must consult the affected employees and ensure (and be able to demonstrate) a fair and transparent process.
Collective redundancy
Collective redundancy happens when an employer plans to dismiss 20 or more employees within a 90-day period. In such cases, ‘collective consultation’ rules apply.
These rules involve:
| Notifying the Redundancy Payments Service (RPS). | If there are between 20 and 99 proposed redundancies, the notification must be made 30 days before the first redundancy. If there are 100 or more proposed redundancies, the notification must be made 45 days before the first redundancy. |
| Consultation. | Employers must consult with trade union representatives, elected employee representatives, or with staff directly if there are no representatives. During the consultation process, employers must:
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| Provide notification of the redundancies. | Employers should provide affected staff with termination notices showing the agreed leaving date. |
| Issue redundancy notices. | Once the consultation is complete, employers should issue redundancy notices to affected employees. Employers should also tell employees how they can appeal their redundancy. It is good practice to inform employees being made redundant face-to-face and in writing. |
| Undertake any appeals. | This helps to reduce the likelihood of future unfair dismissal claims. |
Statutory redundancy vs contractual redundancy
All eligible employees are entitled to statutory redundancy pay. But, depending on the terms of their employment contracts, employees may also be eligible for contractual redundancy pay. So what’s the difference?
Statutory redundancy
Statutory redundancy pay is a legal requirement. It is the minimum level of pay that employers must give the employees they make redundant. The government will pay eligible employees statutory redundancy pay if an employer has gone out of business. Employees are entitled to statutory redundancy pay if both of the following apply:
- They have been working for their current employer for two years or more.
- They are an employee of the organisation making the redundancy (independent contractors, self-employed people, and agency workers – amongst others – are not entitled to statutory redundancy pay)
Employees are not entitled to statutory redundancy pay if the employer offers to keep them on, or offers suitable alternative work that they refuse without good reason. In addition, employees do not get statutory redundancy pay if dismissed for misconduct.
Contractual redundancy
Contractual redundancy pay is available to some employees. It can provide a much higher level of payment than the statutory minimum. If an employee is eligible for contractual redundancy pay, the details should be included in their employment contract. Contractual redundancy pay may also be negotiated as part of the redundancy process, or to resolve a potential unfair dismissal claim.
Common reasons for redundancy
- Business closure. Redundancies can happen when an employer shuts down its business or closes a particular site or location.
- Business restructuring. Redundancies may be necessary when a business is restructured. Such a move can alter employees’ roles and responsibilities, making some people superfluous to requirements. For example, functions might be combined, resulting in certain people being laid off.
- Changing business needs. Sometimes, a role simply becomes redundant. For example, in recent years, the introduction of new technology has made some jobs unnecessary (e.g. electronic cashiers). Many of the jobs that exist today will likely become redundant over the next few years as new technologies are adopted by employers.
- Business relocation. If a business decides to move its operations, it is unlikely that all employees will choose to relocate – even if their job still exists. In such circumstances, staff unable or unwilling to relocate may need to be made redundant.
The redundancy process for employees
If you are an employee who has been unfairly made redundant, we understand the frustration and stress you may be facing. Our experienced redundancy solicitors will diligently review your case, leaving no stone unturned to fight for your rights and seek justice on your behalf.
While individual redundancies don’t have the same requirements as a ‘collective redundancy’, your employer still has to follow a fair process. Below, we have explained your legal rights. This knowledge will help you find out whether you have a claim for unfair dismissal.
Here are some things you should do to ensure your employer is not breaking employment law.
| Check your employer’s redundancy process. | Check your staff handbook and employment contract for your employer’s redundancy process. Ask your manager or HR for a copy if there isn’t a written record. Your employer has to tell you what process will be followed when making you potentially redundant. If the process differs from other redundancies made by your employer, and there is no good reason for this, the redundancy could be unfair. Specifically, your employer should tell you:
If your employer plans to dismiss 20 or more employees within a 90-day period, collective consultation rules apply. |
| Prepare for the meeting with your employer. | Your employer should invite you to at least one meeting to discuss the proposed redundancy. This meeting must happen before your employer makes any final decision about who to let go. At this meeting, your employer should confirm:
Your employer should be prepared to answer any questions about the process, and listen to any representations and suggestions you make. |
| Inform your employer if you think you are being made redundant unfairly. | Inform your employer if you think your redundancy is unfair, or if you believe they are not following the correct process. Be sure to do this ASAP (e.g. at the above meeting or before). It is essential to raise any such issues before a final decision has been made. |
Reasons why your redundancy might be unfair include:
An unfair selection process
When selecting employees for redundancy, your employer must use a fair and unbiased process and inform you of the criteria being used for selection. Reasonable selection criteria for redundancy may include skills, experience, aptitude, qualifications, attendance, and disciplinary record.
An unfair selection criterion includes age, disability, race, sexual orientation, marital status, religious beliefs, etc. A redundancy is automatically unfair if you were selected based on you:
- Becoming pregnant
- Joining a trade union
- Whistleblowing
- Raising a grievance
- Asserting your employment rights.
Likewise, if you are on maternity leave and were not told about a potential redundancy at the same time as everyone else, this will likely be considered discrimination by an Employment Tribunal.
No minimum notice
Redundancy law requires employers to give employees notice when being made redundant. Established in law, these notice periods are:
- One week’s notice if you’ve been employed between one month and two years
- One week’s notice for each year if you’ve been employed between two and 12 years.
- 12 weeks’ notice if you’ve been employed for 12 years or more
You could be entitled to longer notice periods depending on the terms set out in your employment contract. Your employer can offer payment instead of notice if they don’t want you to work your notice period.
No consultation process
As outlined above, employers must consult with employees before making them redundant. If this hasn’t happened, you might have a claim for lack of consultation or unfair dismissal.
If you are off sick or on holiday, your employer must still meet you before deciding to let you go. If you are on maternity leave, your employer should arrange a meeting at a time and place that’s easy for you. You can request a call/video consultation to avoid going to a meeting.
No appeal
You have the right to appeal the redundancy decision. If the appeal process does not resolve the issue, you may be able to take legal action by bringing a claim against your employer in an employment tribunal
How much redundancy pay will I get?
If you’re an employee and you’ve been working for your current employer for two or more years you will be entitled to statutory redundancy pay.
The amount of statutory redundancy pay due depends on how long they have been with the company making the redundancies, their age, and their weekly pay. As a rule, you’ll get:
- For employees under the age of 22: Half a week’s pay for each full year of service.
- For employees aged 22 to 41: One week’s pay for each full year of service.
- For employees aged 42 and over: One and a half week’s pay for each full year of service.
Length of service is capped at 20 years and from 6 April 2023, weekly pay is capped at £643 and the maximum statutory redundancy pay you can get is £19,290.
You can calculate your statutory redundancy pay on the government website.
You may also be entitled to additional contractual redundancy pay if this is included in your employment contract or has been negotiated as part of the redundancy process.
Who pays redundancy when a business closes?
If an employer goes out of business, employees will receive their statutory redundancy pay from the government. But they do have to claim for it. Employees can claim for:
- Redundancy pay
- Holiday pay
- Unpaid wages, overtime, bonuses, commission, etc.
- Notice period pay
Employees cannot claim contractual redundancy payments from the government if their employer has gone bust.
Redundancy lawyers London - FAQ’s
- Redundancy happens when an employee’s job becomes redundant, meaning it is no longer required. Redundancy can occur for several reasons, including organisational or location changes, technological advancements, or economic factors (e.g. the business becoming insolvent)
- In the United Kingdom, the amount of standard redundancy pay (statutory) an employee will receive when made redundant is based on their length of service, their age, and their weekly pay. Statutory redundancy pay entitlements for eligible employees are governed by the Employment Rights Act 1996. As of April 2023, weekly pay is capped at £643 and the maximum amount of statutory redundancy pay is £19,290.
- From 6 April 2023, the maximum statutory redundancy pay you can get is £19,290. You might be entitled to additional contractual redundancy pay depending on your employment contract and/or the terms of your redundancy.
- If your job still exists, it is unlikely that your employer will be able to make you redundant. However, there are some exceptions. For example, if your employer relocates, but you do not want to move to a new location.
- Likewise, your employer might decide to reduce the number of people doing a specific job role. Your job would still exist, but your employer would need to make some of the people currently working in this role redundant. In this instance, your employer must adopt a fair and objective criteria when selecting who to let go.
- If your employer is paying the redundancy, you should get this on the day you leave work or an agreed date soon after. If the government is paying your statutory redundancy pay (because your employer has gone out of business), you will need to wait until your claim has been processed with the Redundancy Payments Service. Most people get their money within six weeks of applying.
- Yes. You can be made redundant while on maternity leave but cannot be selected for redundancy based on your pregnancy, maternity leave, or other family-related leave. A failure to follow the specific rules and regulations related to maternity could result in an unfair redundancy and a discriminatory claim.
- Unless agreed otherwise, you generally have to work your notice. However, in some cases, employers agree to waive the notice period, allow employees to work a shorter notice, or let them take gardening leave. You may be entitled to reasonable time off to find a new job depending on your situation. Check your employment contract to see what it says about your notice period obligations and rights on redundancy.
- Redundancy on medical grounds may be possible. However, your employer must first consider if there are any suitable alternative roles for you within the business or any reasonable adjustments they can make to enable you to perform your role. Your employer still has to follow a fair and transparent process when considering redundancy on medical grounds, and redundancy can only take place once other options have been considered and exhausted.
- Yes, redundancy pay is considered income, but it may be taxed differently than your regular income depending on the amount and type of pay received.
- Unless agreed otherwise, you generally have to work your notice. However, in some cases, employers agree to waive the notice period, allow employees to work a shorter notice, or let them take gardening leave. You may be entitled to reasonable time off to find a new job depending on your situation. Check your employment contract to see what it says about your notice period obligations and rights on redundancy.
- Yes. Statutory redundancy pay is taxable, although tax-free up to a certain limit. Contractual redundancy pay is usually subject to income tax and National Insurance contributions (NICs).
Reasons to instruct our redundancy solicitors
Having acted for hundreds of clients across most industry sectors, from individuals to small start-ups and large corporates, whatever type of redundancy legal help you need, we have the experience, skills, and aptitude to support you.
Here are some reasons why you should contact our experienced employment law redundancy lawyers today.
Fast turnaround
Working diligently to save time, disruption, stress, and costs, we pull out all the stops to ensure a swift resolution of all redundancy matters and disputes – including unfair dismissal claims.
Best possible results
Redundancy experts, we know what it takes to secure the best possible outcome for you. And because we work for both employers and employees, we understand how the other side thinks. This means that we anticipate their moves and use this knowledge to your advantage should a redundancy situation become contentious.
Specialist redundancy solicitors
Our highly experienced redundancy solicitors provide expert employment law services to employers, senior executives, directors, and employees. Through skilled and knowledgeable legal advice, support, and representation, often on complex issues, we can help with both contentious and non-contentious redundancy matters.
Unrivalled client care
We always put the needs of our clients front and centre. Offering a personal and sympathetic touch, our commitment to client care has been recognised by our Lexcel Accreditation status.
Contact our redundancy lawyers today
Facing a redundancy matter or dispute? Don’t worry, we’ve got you covered. No matter how complex the issues may be, our expert redundancy solicitors are here to help.
If you are an employee who has recently been made redundant unfairly, or are at risk of redundancy, we can help. We also help employers to correctly navigate the redundancy process, and protect and defend against any redundancy-related employment claims.
Let us help you achieve the best possible outcome. For your free initial consultation, simply call our redundancy lawyers today on 020 7467 3980 or complete our online enquiry form.
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