Notice of Redundancy – Giving Staff Notice While Respecting Employee Rights

It’s tempting to think that redundancy is a simple process; however, a wealth of laws in the UK protect employee rights to ensure a fair process.

Employees are at amongst their most vulnerable during redundancy. Legislation provides a baseline of minimum rights, augmented by any provisions in an employment contract.

Employers must adhere to the minimum statutory requirements—otherwise, an employee could bring a claim for unfair dismissal or discrimination. 

This article explains everything you need to know about showing an employee the door with respect and fairness, whilst complying with minimum statutory requirements.

Need to Let Someone Go or Terminate a Role? Here’s What the Law Says

A redundancy may be wholly justified from a business perspective, but regardless of this, every employee has rights throughout the process.

The Employment Rights Act 1996 has a prescribed framework with defined guidelines that cover different aspects of redundancy, such as the minimum amount of notice (called statutory notice) and other legal obligations.

An employee’s contract may enhance the notice period, especially for senior staff members. However, notice of redundancy can never fall below the minimum prescribed by law, which is:

• A minimum of one week’s notice if an employee has been in post between one month and two years
• One week’s notice for each year they are employed, between two and twelve years.
• Twelve weeks’ notice if an employee has been employed for twelve years or more

If the employment contract offers more generous notice periods, these must be complied with.

The statute also covers redundancy pay for employees with at least two years’ continuous service. The correct notice period and redundancy pay are statutory entitlements.

Another legal obligation is the right to consultation, an essential part of the process. Employers must consult employees threatened with redundancy, provide them with certain information, and explore other alternative roles within the organisation.

One Mistake Can Lead to a Tribunal

The case for redundancy can be indisputable, but despite this, employers must tread carefully. If you put one foot wrong, you could face a claim for unfair dismissal or discrimination. 

Under legislation, employee rights are inviolable, even if the redundancy is voluntary rather than compulsory. 

An employee can bring a claim if they were unfairly selected, the employer didn’t follow a fair process, or there was no adequate consultation, including consideration of alternative roles.

A successful claim at an Employment Tribunal can mean reinstatement, re-engagement, or compensation.

How Helix Law Helps Employers Handle Redundancy 

Letting staff go needs to be handled tactfully and fairly, and it’s essential to comply with the letter of the law to avoid problems later on.

Helix Law is your legal professional from the outset. We can advise whether your changing business needs or relocation constitutes redundancy under the Act, then implement the correct process quickly and efficiently.

Redundancy is an emotive issue; it’s easy for this to distract from the task and for errors to arise. Helix will ensure:

• Fair and objective selection criteria to select employees for redundancy, avoiding the possibility of a discrimination claim later.
• How to calculate continuous employment.
• Mechanisms to manage individual consultations with each employee so that they are meaningful and authentic, and not just a box-tick exercise, which is not legally compliant.
• How to calculate the proper redundancy pay for each employee.
• The right to consultation process is correctly implemented, with relevant information provided to those employees and alternative roles considered.
• The correct notice periods are issued to comply with UK employment legislation and any provisions contained in employment contracts.
• Notice is given at the appropriate time, i.e., after the selection and consultation processes have finished.
• The notice is provided in the correct form (in writing) and details all the prescribed information, including the reason for redundancy, information on redundancy pay and how it is calculated, details on notice pay (which is different from redundancy pay), any other entitlements, and the date of termination of employment.
• The letter should also contain information about how an employee may complain about the selection and their right to appeal.

Contact Us Today

UK law clearly defines redundancy, but there are complexities and pitfalls for the unwary. 

Whilst the legislation suggests a ‘one-size-fits-all approach’, each role will have a unique background and each impacted or potentially impacted person a work history, so planning and implementing a redundancy process can be complicated and time-consuming.

Helix Law’s experienced employment law team is with you every step of the way, ensuring your redundancy process is time-efficient, respectful, and legally compliant.

Whether you’re facing a claim for unfair dismissal or discrimination, have started the redundancy process and hit a problem, or don’t know where to start, contact Helix today for practical advice from professionals who are experts in their field.