From Lawpack's Your Rights at Work.
Redundancy is a potentially fair reason for dismissal, but it will only be fair if your employer has carried out a fair procedure in selecting you for redundancy, which must include them consulting you about the redundancy, and that your dismissal was due to the fact that:
- your employer has ceased, or intends to cease, carrying on the business for which you were employed or has ceased, or intends to cease, carrying it on at a place where you were employed (i.e. relocation); or
- the business's need for work for which you were taken on has, or is expected to, cease or diminish (i.e. a reduction in the number of employees is required).
Even if your dismissal for redundancy is fair, you may still be entitled to a Statutory Redundancy Payment.
Statutory Redundancy Payment
You will be entitled to a Statutory Redundancy Payment if you have at least two years' service after reaching the age of 18. The entitlement is calculated in the same way as the basic award for unfair dismissal claims (see 'Compensation for unfair dismissal' for further information) except employment prior to reaching 18 isn't counted and if you're made redundant after your 64th birthday, the payment is reduced by one-twelfth for every month after that.
You may raise a complaint with an employment tribunal within six months of termination if you have not received the correct redundancy payment. The time limit may be extended for a further six months if it's approved by the employment tribunal.
You are not entitled to Statutory Redundancy Payment if, before the existing job ends, your employer offers you (verbally or in writing) employment on the same terms or suitable alternative work, beginning within four weeks of the ending of the original employment. If you unreasonably refuse such an offer, or during a trial period for the new job (which you can opt for) you unreasonably terminate such employment ('unreasonably' in both these instances being judged subjectively as to what is reasonable in your particular circumstances), you lose the right to Statutory Redundancy Payment.
If you leave your job before dismissal takes effect and your employer objects in writing, the employment tribunal may determine the extent of your entitlement.
Law stated as at 1 March, 2006