Redundancy Law

Redundancies can arise for various reasons; these include the closure of a business or changes within the business leading to a reduction in work.

If an employee is made redundant, then as long as they have been working for the company for at least two years, they are entitled to a statutory redundancy payment from their employer.  If the company has a redundancy scheme in place, the employer has to honor this as well as the statutory entitlement.  If the statutory redundancy payment is not made the employee can submit a claim to the Employment Tribunal within 6 Months.

Employees are entitled to be forewarning about possible redundancies and the employer must work to a set criterion when deciding whom to make redundant.  If an employee feels that the redundancy is unjustified or was not carried out in a fair manner, with inadequate consultation and no consideration of alternative employment, he/she may be able to claim for unfair redundancy dismissal. He/she would have to have at least one year's service and would need to submit the claim to an Employment Tribunal within 3 months minus one day from the dismissal date.

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