Redundancy
Redundancy would occur if the dismissal is
wholly or mainly because:
- Your employer has stopped or intends to stop business in the
place where you are employed; or
- your employer has stopped or intends to stop business for the
purposes for which you are employed; or
- your employer's need for people carrying out work of a
particular kind in the place where you work has stopped or reduced
or is expected to do so.
You may lose your right to a redundancy payment if you
unreasonably refuse an offer of suitable alternative employment
made before the end of your original contract. The new job must
begin at latest four weeks after your original employment ends.
Whether the offer is a suitable alternative to your original job
depends on factors such as location, pay, hours, holiday, grade,
status and travel to work. Even if it is suitable, the employee
might still get a redundancy payment if he/she has good grounds for
turning it down e.g. personal circumstances or problems that make
it reasonable to do so. If in doubt, you can try the new job for up
to four weeks before deciding whether to accept it or not.
There are special, complex rules covering workers who are laid
off or are on short time. In summary, lay off happens when an
employee gets no money because there is no work. Short-time means
getting less than half a week's pay. When either happens for at
least four continuous weeks of for at least six weeks out of
thirteen, the employee can write to their employer claiming
redundancy pay. There are then very tricky rules about notices and
counter-notices. If this happens to you, contact your GMB
representative for further information.
Your employer should give advance warning of possible
redundancies and consult with the union and individuals likely to
be affected.
Most Asked Questions
You may be able to claim welfare benefits after you have received your redundancy payment.
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If your employer is insolvent redundancy payments count among those debts that take priority over others.
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To qualify for a statutory redundancy payment you must:
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GMB negotiates enhanced redundancy pay schemes with employers for our members.
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The employer should give you at least the statutory notice of a week for each complete year of service,
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