Employment Law Explained

Category Archives: Redundancy

Redundancy for New Mothers on the Rise?

Guest Post

 

A new survey carried out by research company OnePoll suggests that pregnant women and new mothers could be being discriminated against by employers looking to lay off staff.

One thousand women were questioned as part of the research, and their answers reveal a problem that appears to be escalating. Pre-recession, it was estimated that 30,000 women per year were losing their job unfairly as a direct result of their pregnancy. It is thought that this figure is likely to be much higher now.

The responses revealed that:

The Grass Can Be Greener after Redundancy

Guest Post

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The redundancy threat has got employees trembling at their desks. In the UK, after three years of recession, job security feels like a distant dream. The 24/7, ‘living to work’ culture has become worse, meaning that we labour harder for less pay, and sacrifice our family life for career progression. This is neither sane, nor healthy, but someone’s got to bring home the bacon.

If you’ve been made redundant, you’re probably experiencing a smorgasbord of emotion, from anxiety to depression. On the one hand, you’re concerned that you won’t be able to pay the bills, and on the other, you’re feeling like you’ve been thrown on the rubbish heap. Right now, there’s one resounding question in your mind: why me?

Redundancy Consultation Period Takes a Hair Cut

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Announcements from the Government on employment law reform come through thick and fast these days – one a week it seems – and in this week when everyone is considering  how many mega-calories they will be consuming over the next seven days, it is collective consultation periods in redundancy programmes that has hit the (employment law) headlines.

When are Enhanced Redundancy Payments Contractually Binding?

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Contractually Bound?

The simple answer is when they say they are. Probably. What if the payments are said to be discretionary or nothing at all is said about their status?  Why does it matter anyway?

Statutory Redundancy Pay (SRP) is not especially generous:  up to £430 per complete year of service up to a maximum of twenty years employment for most people.  For those over 41 years of age they are entitled to a maximum of £645 per year.  This means that the theoretical maximum amount of SRP is £12,900, plus whatever notice pay the employee may be contractually entitled to.

No Consultation Always Equals Unfair Dismissal?

Can a redundancy without any warning or consultation ever be a fair dismissal?

In most cases the result will be an unfair dismissal.  However, in the case of Ashby v JJB Sports PLC the employer was held to have acted fairly in not warning or consulting Mr Ashby about his redundancy.

The facts were fairly specific so most employers would be well advised not to try and rely on this case.

Dealing with Redundancy

Guest Post

Being made redundant is undoubtedly a difficult and distressing time. Many people often feel unsupported and alone when trying to navigate through the process of identifying a possible alternative to replace lost income and work.

However it’s important to know that you’re far from powerless in the face of redundancy and in fact there’s plenty you can do to fight your corner.

Your legal rights

How to Run a Redundancy Blofeld-style


I haven’t seen Skyfall yet, but James Bond came to mind  when I read about the latest round of redundancies at UBS. Employees at the troubled Swiss investment bank got a rude awakening on Tuesday when they found their security passes wouldn’t let them into the office.  Instead, according to a report in the Daily Telegraph, “the traders were whisked to offices  on the fourth floor where they were handed an envelope containing details of the redundancy process”. I love the way that is written – “whisked” to the fourth floor, no doubt to meet a villainous-looking HR “Business Partner” perhaps sitting by a large water feature, stroking a long haired white cat – “ahh, Mr … we’ve been expecting you”. Having been handed an envelope telling them they were on “special leave” and if they escaped an early bath with the piranhas as they left the fourth floor they went out and got drunk in a nearby pub.  And why not?

ACAS Redundancy Checklist

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As an employer do you need help with understanding the law on making employees redundant? ACAS recently published a very helpful checklist that covers the main issues.

It will also be of use to employees placed “at risk” of redundancy if they are in doubt about the fairness of the procedures used.

ACAS Guidance on Redundancy and Pregnant Employees

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But some no win no fee merchant somewhere will probably try …

 

ACAS, together with the Equality and Human Rights Commission, has published a very helpful guide for employers wanting to know how to tread through the minefield of making a pregnant employee redundant. Called, unsurprisingly enough, Managing Redundancy for pregnant employees or those on maternity leave it’s a very readable and concise guide and explodes a few myths on the subject, such as that you can’t make a pregnant employee redundant.  On the contrary it is possible, provided it is done for a genuine redundancy reason, which doesn’t mean “we don’t have part-timers here” and reorganising accordingly to exclude her.  The Guide is no substitute for taking legal advice if you’re an employer or employee, but is a useful introduction to the subject.

Redundancy Scoring: An Uphill Struggle for Employees?

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How should an employer select which employees to make redundant? Unless a unique role is being removed from the business structure there needs to be a criteria in place to choose the unlucky people to be sent to the departure lounge.

Ideally that selection criteria should be objective and non-discriminatory as possible, although previous case law (Mitchells of Lancaster (Brewers)Ltd v Tattersall) has held that using non-objective criteria is not fatal to a redundancy selection exercise, provided the criteria is used fairly. However, problems can arise where the criteria itself is not in dispute.