The HMRC guidance explicitly states that 'your employer can still make you redundant while you're on furlough or afterwards. However, if employees are served with notice of dismissal, secondary issues arise on notice periods and pay for furloughed employees.
What is the required minimum redundancy notice period?
| Period of continuous service | Minimum notice period |
|---|
| Less than or equal to 1 year | 1 week |
| More than 1 year but less than 3 years | 2 weeks |
| More than 3 years but less than 5 years | 3 weeks |
| More than 5 years | 4 weeks |
What redundancy pay is payable?
| Period of continuous service | Redundancy pay |
|---|
| At least 2 years but less than 3 years | 6 weeks |
| At least 3 years but less than 4 years | 7 weeks |
| At least 4 years but less than 5 years | 8 weeks |
| At least 5 years but less than 6 years | 10 weeks |
Can I be made redundant if my job still exists? Redundancy is only allowed if there's no longer a need for the role to exist, and it certainly isn't legal for you to be made redundant only for your job to be taken by someone else shortly after you've been made redundant.
If you're being made redundant, you might be entitled to redundancy pay. There are 2 types of redundancy pay you could get: 'statutory' redundancy pay - what the law says you're entitled to. 'contractual' redundancy pay - extra money your contract says you can get on top of the statutory amount.
This is calculated as follows:
- half a week's pay for each year of employment up to the age of 22;
- one week's pay for each year of employment between the ages of 22 and 40;
- one and a half week's pay for each year of employment over the age of 41;
- a maximum of 20 years' employment can be taken into account; and.
You'll normally be entitled to statutory redundancy pay if you're an employee and you've been working for your current employer for 2 years or more. You'll get: half a week's pay for each full year you were under 22. one week's pay for each full year you were 22 or older, but under 41.
Any payments that meet the conditions of a genuine redundancy are tax free up to a limit based on your years of service with your employer. Your employer will report the tax-free amount as a lump sum on your income statement or PAYG payment summary – individual non-business.
If an employer cannot afford to pay their employees redundancy pay, then the employee could pursue the employer through the employment tribunal or civil court to claim the money they are owed.
This largely depends on how quickly the RPS processes the claims, but it aims to pay within 3 to 6 weeks of receiving the claim. Hopefully this will mean that your claim will be paid out within 8 weeks of the liquidation.
If you've been in the same job for at least two years your employer has to pay you redundancy money. The legal minimum is called 'statutory redundancy pay', but check your contract – you might get more.
Your employer might ask if anyone wants to take voluntary redundancy. If you volunteer, it's up to your employer if they select you for redundancy.
Negotiating a higher redundancy payout – 10 top tips
- Set out your objectives.
- Check your contract of employment.
- Check your employer's redundancy policies.
- Decide your negotiating strategy.
- (Almost) always seek to negotiate the financial values.
- Be clear and polite when negotiating.
- Take good notes of meetings.
- Do your research.
You do not have to wait until you have used up your redundancy payment to be able to sign on. Most people who were employed under PAYE will have made enough national insurance (NI) contributions to qualify for contributions-based Jobseeker's Allowance, which is payable for 26 weeks regardless of savings and income.
Under zero-hours contracts, you have the same rights as other employees to: rest breaks at work. rest between working days or shifts. weekly rest periods.
Like most workers, zero-hours contract employees are legally entitled to 5.6 weeks of paid holiday a year. This means that they're also legally entitled to a week's pay for each week of statutory leave they take. Their specific pay and entitlement is calculated based on the number of hours they work.
The Zero hour contract tends to be of benefit more to the employer than the worker. The main negatives to these contracts are that you don't have a steady income. Workers on zero hours contracts are not entitled to a pension and getting holiday may be difficult.
If you an employee on a fixed-term contract, your right to redundancy pay and notice is more complex. If your contract is for a maximum term with a clause allowing the parties to terminate earlier, your contract can only be terminated early in accordance with that clause.
In most cases, the ending of a fixed-term contract will be a redundancy. In any case, any redundancy process that applies to fixed-term staff should not be less favourable than that afforded to permanent staff.
Here are the Top 10 alternatives to redundancy:
- Recruitment freezes.
- Pay freezes or cuts.
- Pay deferral schemes.
- Remove overtime.
- Short-term or flexible working.
- Reduce use of agency workers.
- Cut bonuses or pension payments.
- Sabbaticals (paid or unpaid)
If you're offered a job and your new employer wants you to start before your redundancy notice ends, speak to your employer and see if you can leave early without losing your redundancy pay. If you leave early without your employer's permission, you could lose some or all of your redundancy pay.
Redundancy means repetition of the same meaningful words in a single sentence. It is an unnecessary part of the sentence structure. Besides, redundant words or phrases do not contribute to the meaning rather removing them improves readability. So it should be avoided during structuring a sentence.
Many small businesses do not have to pay redundancy when making an employee redundant. Your business is considered a 'small business' under the Fair Work Act if you have fewer than 15 employees. Although these small businesses do not have to pay redundancy, certain industry modern awards may create an obligation.
