Employment Law on Redundancy – When Redundancy Becomes Unfair Dismissal

Did your employer make your job redundant? Of course, you should take a look at reasons for the decision. Are you singled out to take a redundancy? Is the business really not doing well? Is the employer looking for a new employee who would occupy your position? Be aware that there may be cases when employers inappropriately and illegally make employees redundant. You need to take a look at the UK employment law on redundancy.

You should be aware that in the employment law on redundancy, if you have been made redundant for illogical and unreasonable reasons, you may file for an unfair dismissal claim or case. Many employees fail to differentiate the two.

According to the employment law on redundancy, there is an unfair dismissal instead of redundancy if the following situations are observed. First, the redundancy is not actually real. This happens when you see on the classified ads that the employer is looking for a direct replacement for your position. You may also learn that the new employee has been immediately hired after you have been made redundant.

Second, there is unfair dismissal, not redundancy, if the employer failed to properly and adequately consult you before you were made redundant. It is a standard practice that employers notify in writing employees in advance before any redundancy is declared. There should also be a formal meeting set by the employer to discuss the situation and explore possible options, including an alternative offer for employment or a possible transfer to another business unit. The employment law on redundancy also mandates the employers to inform and at the same time consult a recognized union for at least 30 days prior to the redundancies if 20 or more employees are to be made redundant.

Third, you have been unfairly selected. This means that the employer’s decision to choose you for redundancy is not objectively justified as fair and in due accordance with employment law on redundancy. There must be a consideration given to important factors or issues like length of service, time keeping, productivity, and possible future requirements of the company.

Fourth, if there is a business transfer or a change in ownership, there is no need to make jobs redundant in connection with the business transaction. If you have been made redundant prior to the sale of the business or after the change of management, you could count it as an automatic unfair dismissal, as stated in the employment law on redundancy.

Lastly, there is unfair dismissal if the employer failed to offer you a suitable alternative employment within the company. You have the right to decide whether to take another job or position under the same employer. If you think you would not do well in other jobs within the company, you may refuse the offer and automatically qualify for an appropriate redundancy package. Employment law on redundancy clearly states this.

If the employer senses that you are out to file for an unfair dismissal claim and case, he or she may offer you a compromise agreement. You must hire an independent employment solicitor of your choice to get guidance in understanding and entering into the agreement. The employer has the responsibility to shoulder all costs hiring a solicitor could possibly incur.

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