Claiming Compensation in Redundancy Cases

Redundancy happens when there is no use for certain kind of works and workers. In such cases, the company might dismiss these workers, or in other words, make them redundant by paying some compensation. This is not an absolute decision on part of the employer as the employee can appeal against redundancy.

A redundancy clause is essential introduced in every employment contract with the specific mention of the amount that the employee might get if he or she is made redundant.

When is redundancy claimable?

If redundancy is only a reason for dismissal with no valid grounds, then it can be appealed to the employer. If the employer takes no proper transparent procedure to carry out redundancy and does not act as stated in the contract, then the employee can claim compensation by filing a case with the ACAS or Employment tribunal.

Generally, in such cases, the employer might dismiss an employee wrongfully or on unfair grounds or the payment might not be received as promised (either in time or in the right amount).

What steps should the employer take before redundancy call?

• Employer must make a list of employees to be made redundant with the reasons of making so.
• The employees should be informed at the earliest so that they can make other alternate arrangements for their finances and jobs.
• The employer must have a meeting with union representatives and listen to alternate plans to redundancy, if any.
• The redundancy amount should tally with the amount stated in the contract, if any.
• The Department for business enterprise and regulatory reform (BERR) should be informed 30 days prior to the process if 20-99 employees are to be made redundant and 90 days prior to the process if more than 100 are going to be made redundant.

How to claim compensation for redundancy issues?

Redundancy payments are made on a standard calculation that involves taking the employee’s age, no. of years worked for the company and the average weekly pay. Calculating that an absolute maximum figure obtained will be £11,400. And to be eligible for this payment, the employee should have at least 2 years of service with the company.

If this sum is not paid, the employee can appeal to the internal disciplinary and grievances committee. Sometimes employers may follow the minimum amount stated by the law to minimize their cost. This can be appealed and is claimable.

If the employer refuses to listen to the appeal, the employee can hire a compensation attorney to file a claim with the employment tribunal. The tribunal, upon listening to both sides, will send written verdicts. If the employer is found guilty, he/she has to pay compensation to the claimant. Re-instating and re-engaging are rarely the verdicts in such cases.

The compensation here will be claimed on the grounds of unfair dismissal. To avoid double compensation payments, any previous redundancy payment will be revoked.
For more information, contact a claims lawyer.