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11 October 2012

A redundancy situation can arise where a work place is moving or an employer is ceasing trading altogether or where an employer has a reduced need for carrying out the kind of work its employees were employed for.

Selection Criteria

An employer is required to carry out the proper redundancy procedure and should start by indentifying the group of employees at risk of redundancy. This is known as the redundancy selection pool. An employer must take an objective approach in selecting the employees and take into account their performance; length of service, skills, qualification, training, attendance record, time keep and disciplinary records. A redundancy selection criteria which involves a selection based on sex, race, age, disability etc must not be used. The selection must be dealt with in a fair way with reference to accurate and up to date information.


Once an employee has been provisionally selected for redundancy an employer must consult the employee before reaching its final decision. Consultation should consist of several meetings which gives both the employer and employee to discuss the situation and give the employee the opportunity to:

Present any suggestions to avoid ways to avoid the redundancy

Consider any alternative positions

Discuss the basis for the selection

Provide any information which may influence the decision

Address any other matters or concerns that the employee has

If an employee is not consulted properly and made redundant, the employee may have a claim for unfair dismissal depending on the circumstances.

Financial entitlement

An employee will want to know about financial entitlement if he is made redundant. However, an employee will only be entitled to certain payments depending on the terms of the employment and how long he has been employed.

An employee is entitled to statutory redundancy pay if he has worked for the employer for 2 years or more. A set formula is used to calculate the amount of statutory redundancy pay he is entitled to: age, length of service and weekly pay (this is subject to an upper limit).

Other payments include:

Enhanced redundancy pay

Notice pay

Pay in lieu of accrued but untaken holiday

Aneela Akbar is a trainee and can be contacted at

About the Author

Lawdit Solicitors offer services and advice for litigation, commercial contracts, Intellectual Property and IT legal agreements. We are experts in commercial law with a heavy emphasis on Intellectual Property, Internet and e-commerce law. Lawdit is a member of the International Trademark Association, the Solicitors' Association of Higher Court Advocates and we are the appointed Solicitors to the largest webdesign association in the world, the United Kingdom Website Designers Association.

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Article Published/Sorted/Amended on Scopulus 2012-12-18 09:00:10 in Legal Articles

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