If you’re facing compulsory redundancy, it can be difficult to remain positive. However, we have compiled some clear and straightforward tips to help keep you looking ahead.
Redundancy: The Outlook
With the rise of AI and automation, a large number of roles once held by humans are becoming obsolete. In fact, we expect to lose 12 million jobs across Europe by 2040 due to these advancements in technology. The most at-risk jobs are mid-skill labour jobs that consist of simple, routine tasks. In the UK alone, this consists of 31% of the entire workforce.
That being said, it’s not all doom and gloom. Although we will lose a large number of jobs, we also expect the creation of close to 9 million more jobs in Europe in areas like green energy and smart cities.
All things considered, you should still take these steps to make sure your financial situation doesn’t deteriorate as a result of potential redundancy.
Your Rights When Facing Compulsory Redundancy
First and foremost, you need to know your rights regarding compulsory redundancy. If an employer is making you redundant, you are probably eligible for a range of things.
These include redundancy pay, a notice period, and a consultation with your employer.
You can claim statutory redundancy pay if you’ve been an employee of the company for 2 years or more. In other words, for every year you worked at the company, they owe you a certain amount of redundancy pay. This depends on your age during the period of service and is capped at 20 years.
The redundancy pay is the average pay you earned per week in the 12 weeks before they issue the redundancy notice. If you were on furlough at any point in those 12 weeks, your statutory redundancy pay should reflect what you would have earned normally.
You should receive:
- half a week’s pay for every year you worked at the company under the age of 22
- one full week’s pay for every year you were aged between 22 and 40
- one and a half weeks’ pay for every full year you were aged 41 or above
You must be given notice before your compulsory redundancy takes place. The official statutory redundancy notice periods are:
- at least one week’s notice if you were employed between one month and 2 years
- one week’s notice for each year employed between 2 and 12 years
- 12 weeks’ notice if employed for 12 years or more
In any case, it’s always a good idea to consult your employment contract. A longer notice period may be given by employers, but they can never give you less.
If you’re facing compulsory redundancy, you should receive a consultation with your employer. During this consultation, you will have the opportunity to speak about the reasons behind your compulsory redundancy and any possible ‘suitable alternative employment’ options.
If a suitable position exists but your employer doesn’t offer it to you, you may have a case for unfair dismissal.
There are several ways you can claim the employer has dismissed you unfairly. Fair and objective reasons for individual redundancy include:
- Most recent hire – the last in should be the first out as employers have a responsibility to their loyal staff.
- Disciplinary record – if you have the worst disciplinary record, they are allowed to use that as a reason for dismissal.
- Appraisal reports – if you have a recorded history of poor performances, skills, qualifications, or experience in comparison to other members of the company.
It’s worth noting that an employer doesn’t have to follow this selection process if a complete part of the company is closing down. In this case, your job becomes redundant, not you. This is still the case if you’re the only employee in a part of the organisation.
If you believe that your employer has dismissed you unfairly, you should appeal the decision. Some selection reasons that would classify as an unfair dismissal include:
- Gender reassignment
- Marital status
- Sexual orientation
- Religion or belief
- Membership status of a trade union
Compulsory Redundancy: Key Takeaways
We recommend you appeal directly to your employer first if you’re facing compulsory redundancy. If that doesn’t lead to a mutual resolution, you should consider talking to a third-party tribunal. For help finding external support, read our list of support and resources for redundant workers.
Although it may be difficult to stay positive, compulsory redundancy can lead to a range of opportunities, such as the chance to retrain, refresh your skills or make a career change.
Refreshing a Career is packed with information for workers who’ve faced redundancy including redundancy assistance, job application tips and CV writing tips. Be sure to check out our redundant workers’ jobs board for all the latest opportunities in your area.
Don’t hesitate to contact our team if you have any questions. And to stay up-to-date with Refreshing a Career, sign up for our newsletter using the form below.