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Management Services Spring 2012
employment tribunal can increase your compensation by up to 25 per cent if you succeed in a claim for unfair dismissal.
It is important to get advice at an early stage if you fi nd yourself subject to a disciplinary procedure because any award of compensation you ultimately receive via a Tribunal if you are dismissed can also be reduced if you, as the employee, unreasonably fail to comply with the ACAS code.
Redundancy
Redundancy is a potentially fair reason for dismissal. In order to satisfy the defi nition for redundancy, the dismissal must be related to the fact that: • Your employer is ceasing to carry on its business or it is ceasing to carry it on in your place of work; or
• The requirements of the business for employees to carry out work of a particular kind have reduced or have ceased.
The focus on the need for employees means that if the same amount of work is to be done by fewer employees, this is still a redundancy. If you have been
continuously employed for two or more years and you are made redundant, you will be entitled to a statutory redundancy payment of up to £400 per week for each year of employment (as of 1 February 2011) to a maximum of 20 years (multiplied by a factor of 0.5, 1 or 1.5 depending on your age). Some employers may have contractual policies which provide redundancy payments over and above the statutory amount.
Where you are made redundant, but are offered suitable alternative employment, you may lose
your right to a redundancy payment if you unreasonably refuse that offer. For the alternative
employment to be deemed ‘suitable’, it would normally need to be at the same or similar level of salary and benefi ts, status and responsibility. You would also have to be given at least a four-week statutory trial period, during which time you may decide – if reasonable – that you do not wish to continue in that employment, to leave and to accept the redundancy payment instead.
Please note that the new ACAS Code of Practice does not apply to redundancy situations.
Constructive dismissal This is an unfair dismissal claim that arises when an employee resigns from their job because of a fundamental breach of contract by the employer. You should seek legal advice if you are contemplating leaving your job because of your employer’s conduct. Please visit
www.rjw.co.uk for the factsheet Making Sense of the Issues Surrounding Constructive Dismissal, part of the Employment Law Series.
Discrimination You may also be able to bring a further claim in an employment tribunal if your dismissal amounted to less favourable treatment on the grounds of your sex (including marital status and pregnancy), race (including nationality), religion or philosophical belief, sexual orientation or age. The same applies if the dismissal was related to a disability or where the employer had failed to make reasonable adjustments to accommodate your disability. Please see the RJW ‘Discrimination’ factsheets for further information.
Bringing a claim You have three months less one day from the date your employment ends to bring a claim in an employment tribunal for unfair dismissal and/or for breach of contract as a result of a wrongful dismissal. Lodging a grievance or being in an appeal process does not affect this time limit.
The employment tribunal only has jurisdiction to consider a breach of contract claim worth up to £25,000. Where a breach of contract claim exceeds that amount, a claim would need to be brought in the County or High Court, for which there is a six-year limitation period from the date of the breach of contract. You also have three
months from the date of any discriminatory act (which may be the dismissal) to bring a discrimination claim in an employment tribunal. Again compensation can be increased or reduced by up to 25% if either side has unreasonably failed to comply with the ACAS Code’s provisions. You have six months from the date of termination within which to bring any claim for a statutory redundancy payment. Remember that time limits can be complicated and that you should take prompt legal advice if you think you may have a claim.
ABOUT THE AUTHOR Russell Jones & Walker Solicitors are home to the independently top ranked employment law team for individuals within England and Wales. We do not deal with businesses and this puts us in a unique position to advise people regarding their employment rights with no confl ict. The team deals with all areas of employment law and regu- larly acts for senior executives and alike negotiating complex settlements and resolving employment issues.
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