Redundancy consultation and selection: employer rules in Great Britain
Redundancy is a form of dismissal with its own rules, outside the Acas disciplinary Code. The assistant explains selection, consultation, notice and statutory redundancy pay.
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Avoiding redundancies and offering alternative work
For a redundancy to be genuine, the job must no longer exist, and the employer should first try to avoid compulsory redundancies, for example by seeking volunteers or restricting recruitment.
A valid offer of suitable alternative work should be unconditional, in writing, made before the current contract ends, and start within 4 weeks. The employee then has a 4-week trial period without losing the right to redundancy pay.
Fair selection and consultation
Fair criteria include skills, qualifications, standard of work, attendance and disciplinary record. Length of service should not be the only criterion, as this is likely to be age discrimination.
Collective consultation applies to 20 or more redundancies within 90 days at one establishment. Form HR1 must reach the Redundancy Payments Service 30 days before the first redundancy for 20 to 99, or 45 days for 100 or more, on pain of an unlimited fine.
Notice and statutory redundancy pay
Statutory notice is at least a week for 1 month to 2 years of service, a week per year for 2 to 12 years, and 12 weeks for 12 or more years.
With at least 2 years' continuous service, employees get half a week's pay per full year under 22, one week's pay from 22 and 1.5 weeks' pay from 41. Service is capped at 20 years and weekly pay at £751 (maximum £22,530).
Frequently asked questions
Who must be offered suitable alternative jobs first?
Employees who are pregnant, on or returning from maternity or adoption leave, or on Shared Parental Leave. Some keep this right for 18 months from the birth or adoption.
What can an employee do if redundancy pay is not paid?
They have 3 months from the end of their employment to claim to an employment tribunal, which can still decide within a further 6 months if they claim late.
Can staff on lay-off or short-time working claim redundancy pay?
Yes, if it lasts 4 or more weeks in a row, or 6 or more weeks in a 13-week period with no more than 3 in a row.
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