What you should know about the redundancy process

During the coronavirus pandemic, many people have experienced changes to their employment situations. Whether you’ve been affected by the furlough scheme, sought work during the pandemic, or are facing redundancy, knowing your statutory and contractual rights is extremely valuable. 

Here at Citizens Advice Manchester, our advisers receive a high number of queries relating to redundancy rights. If you’re at risk of redundancy, it’s important to understand the process and what you can expect, as well as what your rights are. 

In this blog post, we’ll cover some of the most common topics we’re asked about the redundancy process.

Consultation process

If you’re facing redundancy and you’ve held your job for 2 or more years, your employer must follow a fair process. You can find details of your employer’s redundancy process in your contract or company handbook. Your employer should explain the process to you at the start of redundancy proceedings. If your employer is making more than 20 people redundant, they must hold a group consultation.

Your employer should meet with you at least once to discuss the redundancy proceedings, including why redundancies are being made and why you’re being considered for redundancy. This meeting should take place before they make a decision, and it is a chance for you to explain why you shouldn’t be made redundant. It is also an opportunity to discuss alternative options, for example taking on a different role.

Correct notice period

You’re entitled to a statutory notice period if you’ve worked for your employer for more than 1 month. How long the statutory notice period is depends on how long you’ve worked there. You might be entitled to a longer notice period if specified in your contract - this is called contractual notice. 

Your employer may choose to pay you in lieu of notice, which means you’ll receive pay for your notice period and your job will end straight away. 

If you’ve worked for your employer for 2 or more years, you’re entitled to reasonable time off during your notice period to look for a new job or arrange training to help you find a job. during your notice period. 

Redundancy pay

You’ll be entitled to statutory redundancy pay if you’ve worked for your employer for 2 or more years. You may also be entitled to contractual redundancy pay, on top of the statutory amount. You are only entitled to redundancy pay if the redundancy is genuine, so it’s important to check this. 

Statutory redundancy pay is based on your earnings before tax. You can check how much you should receive using this calculator.

In addition to redundancy pay, your final wage slip should include any holiday pay you’re entitled to, maternity/paternity pay (if applicable), and any outstanding bonus, commission, or expenses you’re owed.

If you need further help or advice on understanding your rights at work, you can contact our Adviceline free on 0808 278 7800 or explore our website to find out ways to get advice online.