Employment Advice for those being offered Redundancy.

1. Employment Advice for those being offered Redundancy.

Enhanced redundancy pay is a type of redundancy payment that is greater than the statutory redundancy payment. This type of payment is not required by law, but some employers may voluntarily offer it to their employees. It is often referred to as a “sweetener payment”

2. When can an employee claim enhanced redundancy pay?

An employee can only claim enhanced redundancy pay if it is written into their contract of employment or if the employer has a custom and practice of paying enhanced redundancy. It is usually a take or leave it offer.

3. What are the key ‘dos and don’ts’ when meeting with employers to discuss redundancies?

The following are the key ‘dos and don’ts’ for line managers when meeting with employees to discuss redundancies:

Do:

  • Prepare thoroughly for the meeting – ask for your personnel record
  • Arrange the meeting with HR and have someone come with you.
  • Ask the reasons for the proposed redundancy and criteria used
  • Ask to see a list of redeployment opportunities.
  • Ask for the approximate length of the consultation
  • Expect the employer to ask questions
  • Make notes immediately after the meeting

Don’t:

  • Say “this is a witch hunt”
  • Enter into a debate about comparisons with others
  • Talk too much to fill embarrassed silences
  • Launch a grievance (wait until you hear the reasons for the redundancy)
  • Assume that there are no way of avoiding the proposed redundancy.

5. What is a ‘Polkey’ reduction?

A ‘Polkey’ reduction is a reduction in compensation that may be made by a tribunal if it concludes that there has been a defect in the redundancy procedure. The tribunal will consider whether the employee would have been made redundant anyway and will reduce or eliminate compensation accordingly. So even if the employers have made mistake it can be remedied by extra money to you.

6. What are the statutory redundancy payments?

The statutory redundancy payments are calculated based on the employee’s age, length of service, and weekly pay. Use the calculator: https://www.gov.uk/calculate-your-redundancy-pay

7. What is the difference between statutory redundancy pay and in lieu of notice pay?

Statutory redundancy pay is a payment made to an employee who is being made redundant. In lieu of notice pay is a payment made to an employee who is being dismissed without notice.

8. What are the ‘golden rules’ for redundancy?

The ‘golden rules’ for redundancy are:

  • Employers must set out all statutory redundancy payments in writing to the employee
  • Employers must calculate the statutory redundancy payment as if you had given statutory notice
  • You Keep clear records of all conversations
  • Remember that even if a tribunal concludes there has been a defect in the procedure it may still conclude that the employee would have been made redundant anyway and so reduce compensation or not make any compensation at all. Best to then try and use the soft skills to negotiate.

Finally – Get good legal advice early.

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