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Employment Rights Act 1996, Sections 135-181 - Right to redundancy pay and the definition of redundancy
Trade Union and Labour Relations (Consolidation) Act 1992, Sections 188-198 - Collective consultation obligations
Equality Act 2010 - Protects against discriminatory selection criteria
ACAS Code of Practice - Expected procedural standards The employer has ceased (or intends to cease) carrying on the business, or
The requirements for employees to do work of a particular kind have ceased or diminished (or are expected to)
If the employer simply replaces you with someone else, or the role still exists under a different title, it may not be a genuine redundancy.
The employer must use objective, measurable criteria for selecting who is made redundant. Common (lawful) criteria include skills, experience, performance records, disciplinary history, and attendance. Criteria must not be discriminatory.
The employer must:
Warn you that redundancy is being considered
Consult individually with those at risk
Consider alternatives to redundancy (redeployment, reduced hours, voluntary redundancy)
For 20+ redundancies within 90 days at one establishment: collective consultation with employee representatives for at least 30 days (45 days for 100+)
Before making you redundant, the employer must offer any suitable alternative roles that are available. If you unreasonably refuse a suitable alternative, you lose your right to redundancy pay.
If you were selected because of a protected characteristic (e.g., pregnancy, disability, age), this is both unfair dismissal and discrimination.Half a week's pay for each complete year of service where you were under 22
One week's pay for each complete year between 22 and 40
One and a half weeks' pay for each complete year aged 41 or over
Weekly pay is capped at the statutory maximum (currently £643)
Maximum 20 years of service counted
Ask your employer for the selection criteria, your scores, the pool of employees considered, and any minutes from consultation meetings.
If you believe the process was unfair, write a formal grievance setting out your concerns. Reference the specific failures (lack of consultation, discriminatory criteria, etc.).
Contact ACAS within 3 months less 1 day of your dismissal date. This is mandatory before issuing a tribunal claim.
If conciliation fails, file an ET1 claim for unfair dismissal (and discrimination if applicable).Trial period for alternative roles: You get a 4-week trial period in a suitable alternative role. If it does not work out, you retain your right to redundancy pay.
Enhanced redundancy pay: Many employers offer more than statutory minimum. Check your contract.
Notice period: You are entitled to statutory or contractual notice (whichever is greater) on top of redundancy pay.
Garden leave or PILON: Employers may pay in lieu of notice - ensure this does not reduce your redundancy pay.
Employment
Challenging Redundancy
Overview
Redundancy is a potentially fair reason for dismissal, but employers frequently get it wrong. If you believe your redundancy was not genuine, the selection was unfair, or the process was flawed, you may have a claim for unfair dismissal and/or discrimination.
Key Legislation
What Counts as Redundancy?
Under Section 139 ERA, redundancy occurs when:
When Redundancy Can Be Challenged
1. Not a Genuine Redundancy
If the employer simply replaces you with someone else, or the role still exists under a different title, it may not be a genuine redundancy.
2. Unfair Selection
The employer must use objective, measurable criteria for selecting who is made redundant. Common (lawful) criteria include skills, experience, performance records, disciplinary history, and attendance. Criteria must not be discriminatory.
3. No or Inadequate Consultation
The employer must:
4. Failure to Consider Suitable Alternative Employment
Before making you redundant, the employer must offer any suitable alternative roles that are available. If you unreasonably refuse a suitable alternative, you lose your right to redundancy pay.
5. Discriminatory Selection
If you were selected because of a protected characteristic (e.g., pregnancy, disability, age), this is both unfair dismissal and discrimination.
Your Statutory Redundancy Pay
If you have 2+ years' continuous service, you are entitled to statutory redundancy pay:
Step-by-Step: How to Challenge
Step 1: Request Full Documentation
Ask your employer for the selection criteria, your scores, the pool of employees considered, and any minutes from consultation meetings.
Step 2: Raise a Grievance
If you believe the process was unfair, write a formal grievance setting out your concerns. Reference the specific failures (lack of consultation, discriminatory criteria, etc.).
Step 3: ACAS Early Conciliation
Contact ACAS within 3 months less 1 day of your dismissal date. This is mandatory before issuing a tribunal claim.
Step 4: Employment Tribunal
If conciliation fails, file an ET1 claim for unfair dismissal (and discrimination if applicable).
Key Points
EvenStance Can Help
EvenStance can analyse your redundancy process for procedural failures, generate your grievance letter, prepare your ACAS notification, and build your case for an employment tribunal claim.
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