No, it’s illegal for you to be made redundant whilst your job still exists. Making redundancies while the role still exists can be a challenging and delicate process for any company.
It requires careful consideration, planning, and open communication with all stakeholders involved.
It’s important to conduct a thorough review of the business needs, ensuring that the decision to make redundancies is based on genuine operational requirements and not driven solely by cost-cutting measures.
Transparent communication with the affected employees is crucial, providing them with a clear understanding of the reasons behind the decision and any available support during the transition period.
Offering retraining or redeployment opportunities to affected staff members can help mitigate the impact of redundancies and foster a sense of fairness.
HR managers should maintaining open channels of communication throughout the process, while providing support and guidance, can help both the organisation and its employees navigate this challenging phase with empathy and professionalism
Can my employer make me redundant when my role still exists?
No, it is generally not permissible for an employer to make an employee redundant when the role still exists. Redundancy typically occurs when there is a genuine business need to eliminate a position due to factors such as reorganisation, technological advancements, or economic constraints.
Should an employer terminate an employee’s role while continuing to employ someone else to perform the same or substantially similar duties, it may be considered unfair dismissal. In most jurisdictions, redundancy processes should involve consultation with affected employees, considering alternatives, and providing appropriate notice and redundancy packages.
If you believe your employer is making you redundant unfairly, it is advisable to seek legal advice or consult with relevant authorities to understand your rights and explore potential recourse.
What are the main reasons for being made redundant?
Employers often cite several common reasons for making a role redundant, including:
- The role you were hired for is no longer necessary or relevant due to changes in the organization’s needs or industry dynamics.
- Your company is implementing cost-cutting measures, leading them to consider your position as redundant.
- The company you work for has experienced financial difficulties, leading to closures or ceasing operations altogether.
- Advancements in technology have rendered your skills or job functions unnecessary, resulting in your role becoming redundant.
Please note that the reasons mentioned above are not an exhaustive list for redundancies. If your employer has provided a different reason for your redundancy and you suspect it may be unfair, please don’t hesitate to reach out to us for further guidance and support.
What are my rights if I have been made redundant?
As an employee facing redundancy in the uk your rights are protected by a range of employment law rights. These rights aim to safeguard fair treatment from employers concerning redundancy pay and the provision of suitable alternative employment opportunities within the company.
By adhering to these rules and rights, employers are encouraged to uphold fairness and ensure that employees receive proper compensation and assistance during the redundancy process.
These legal provisions play a vital role in promoting equitable outcomes for employees facing uncertain circumstances and help to alleviate some of the challenges associated with redundancy.
Do I have an entitlement to redundancy pay?
When it comes to redundancy pay, employees in the UK are entitled to specific amounts based on their length of service. If you have worked for your employer for two or more years, the following guidelines apply:
- For each year of service under the age of 22, you should receive half a week’s pay.
- For each year of service between the ages of 22 and 40, you should receive one week’s full pay.
- For each year of service after the age of 41, you should receive one and a half weeks’ full pay.
The only situation where redundancy pay may not be offered despite more than two years of service is if your employer presents suitable alternative employment that you reject without a legitimate reason. It is important to note that certain conditions must be met for the offered role to be considered suitable alternative employment.
If you feel that the amount of redundancy pay offered does not align with your length of service, we recommend seeking advice from a member of our employment law team.
While your current role may be deemed redundant, your employer may have the option to offer you a different position within the company that suits your skills and qualifications. This is known as “suitable alternative employment.” However, the new role must be something you are capable of performing. Your employer cannot offer a completely unrelated role and claim it as suitable alternative employment.
Several factors determine whether the new role can be considered suitable, such as similarities to your previous position, the transferability of your experience and skills, the terms of the job being offered (including pay, benefits, status, hours, and location). If you are uncertain about the suitability of the offered role, especially if it requires a different skill-set, feel free to contact us for expert advice. It is important to note that an employer offering an unsuitable new role cannot be used as a reason for not receiving redundancy pay.
In the event of redundancy, you may still be required to work a notice period, for which you should be paid as per your employment contract. The length of the notice period depends on the duration of your employment:
- For employment between one month and two years, the minimum notice period is one week.
- For each year of employment between two and 12 years, one week’s notice is required.
- For employment of 12 years or longer, a notice period of 12 weeks is necessary.
If you have any questions regarding the notice period you have been asked to work after being made redundant, our team will be glad to assist you.
Regarding starting a new job after redundancy, most employers do not impose restrictions, allowing you to begin employment at your convenience.
Some employers may include a specific period in the contract during which you are not allowed to start a new job after redundancy. This typically occurs in sectors where your knowledge of the previous company could benefit a competitor, such as the finance sector. In such cases, you would need to wait for the stipulated length of time before seeking new employment.
Conclusion
If a employer makes redundancies while the role still exists is generally considered unfair and illegal. Redundancy is typically justified when the role no longer serves a legitimate purpose due to factors such as company restructuring, cost-cutting measures, or technological advancements.
Should an employee believe that their position has been made redundant despite the role still existing, it is crucial to seek professional advice to assess the fairness of the situation. Employers are obligated to provide valid and transparent reasons for redundancies, and employees have the right to challenge decisions that appear unjust.
By understanding their rights and seeking appropriate guidance, employees can ensure that their employment rights are protected and that they are treated fairly during the redundancy process.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.