If your employer closes down its business entirely or one particular department, or if he cuts its workforce in a particular area of work, you may be made redundant and entitled to redundancy payment upon dismissal. 

 

Redundancy is a potentially fair reason for dismissal, provided that it is a genuine redundancy situation, and an appropriate procedure has been carried out if you have had at least 2 years of continuous employment. Failure to follow a fair redundancy procedure when dismissing an employee for redundancy reasons will normally render the dismissal unfair.

 

A fair procedure includes consultation, fair basis for selection, consideration of alternative employment, and opportunity to appeal. 

 

Your employer might offer you ‘suitable alternative employment’ within your organisation or an associated company. They must offer you a suitable alternative job (if one is available) if you’re on, or have recently taken, maternity leave or other types of parental leave. You may lose your right to statutory redundancy pay if you unreasonably turn down suitable alternative employment.

 

You also have the right to a 4-week trial period for any alternative employment you’re offered. If you decide the new job is not suitable this will not affect your employment rights, including your right to statutory redundancy pay.

 

If you’ve been continuously employed for 2 years by the date your notice period ends, you’re allowed a reasonable amount of time off to look for another job and arrange training to help you find another job. How long you can take will depend on your circumstances.

 

No matter how much time you take off to look for another job, the most your employer has to pay you is 40% of one week’s pay.