How Do I Qualify For A Redundancy Payment?
To qualify for a statutory redundancy payment you must:
· be an
employee; and
· have two years
continuous employment with your employer at the date of dismissal;
and
· have been
dismissed by reason of redundancy.
· Dismissal
occurs where:
· your contract
has been terminated by your employer with or without notice; or
· you terminate
your contract of employment with or without notice because of your
employer’s unreasonable conduct (constructive dismissal); or
· you are
employed for a fixed term and your contract expires but is not
renewed.
- No dismissal has taken place if your contract has been renewed
or you are engaged under a new contract of employment and the offer
is made to you in writing before the end of your contract and is to
take effect within four weeks from the end of your original
employment.
· 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
UnionAnd Individuals Likely To Be
Affected