17th March 2015
A Quick Guide to Employee's Rights in a Redundancy Situation
- Employees have the right not to be unfairly dismissed (section 94, Employment Rights Acts 1996). In practice, this means the right to be consulted and the right to be offered suitable alternative employment where possible. However, the right not to be unfairly dismissed only applies to employees who have completed the qualifying period of service of two years less one week.
- Regardless of an employee's length of service, an employee has the right not to be selected for redundancy on certain prescribed grounds as the dismissal will be automatically unfair (section 105, Employment Rights Act 1996 (ERA 1996);
- In a "collective redundancy situation" of over 20 redundancies, all affected employees have the right to be informed and consulted in accordance with section 188 of the Trade Unions and Labour Relations (Consolidation) Act 1992 (TULRCA)
- All employees with two years' qualifying service have the right to paid time off to look for work or arrange training. (section 52, ERA 1996)
- Employees dismissed for redundancy have the right to contractual notice, subject to the statutory minimum notice (section 86, ERA 1996).
- Employees with two years' qualifying service have the right to receive a statutory redundancy payment (Section 135, ERA 1996),
- An employee may also be entitled to a contractual redundancy payment, if there is an express or implied right to one.
- If the employer is insolvent or refuses to pay, the employee has the right to apply to the National Insurance Fund for unpaid "employer's payments", including their statutory redundancy payment and certain sums due under their employment contract.