FINANCE & LAW


Consult, consult, consult – redundancy


Many employees say very little during a redundancy consulta- tion process, but it's important that you participate and ask all the questions you can. If you don't agree with the rationale be- hind the redundancy proposal, explain why. If you can think of an alternative way of dealing with the issue – for example all employees in the department reducing their hours a little to save money – then put forward your suggestions. If a proposal is rejected the employer should say why. Don't be afraid to ask for things to be confirmed in writing.


Employers will often set a timeframe for the consultation process. However, legally (except for collective consultation processes) there is no minimum – or maximum – consultation period. Ultimately an employer needs to follow a reasonable procedure. If you feel that by the end of the process there are still matters to be discussed, ask your employer to extend the consultation process.


Preparing for meetings


It's good practice for employers to allow employees to be accompanied to redundancy consultation meetings by a col- league or trade union representative, but legally there's no statutory right. Check your organisation’s policies and proce- dures to see whether they normally permit employees to be accompanied.


Prepare your responses in writing (or at least have notes) so that you do not, in the heat of the moment, forget the points you wish to make and there can be no confusion over what you say. Employers will normally take notes of meetings and let you have a copy of the minutes afterwards and give you an op- portunity to comment on their accuracy. If there is no note taker, ask for the meeting to be recorded.


Collective consultation


If you are involved in a collective consultation process (where 20 or more employees are at risk), the consultation is much more prescriptive in terms of minimum length. Consultation will take place with employee or trade union representatives regarding specific topics: n the reasons for redundancies n ways of avoiding redundancies n how to keep the number of dismissals to a minimum n how to limit the effects for employees involved.


Collective consultation does not mean that individual consulta- tion is not needed. Individuals should still be consulted with so that their individual circumstances can be taken into account.


© The National Trust Time off to look for a new job


Employees under notice of termination of their employment by reason of redundancy are legally entitled to time off work to look for a new job or arrange training for future employment.


There are no formal steps to be followed in order to exercise this right, however the time off must be ‘reasonable’ and the employee can only complain to a tribunal if the employer has refused to allow the request ‘unreasonably’.


Employees are entitled to be paid for time off to search for a new job, however the maximum amount that an employee is entitled to during the duration of their notice period is 40% of a week’s pay. Although there is in theory no restriction on the amount of time off that can be taken (provided it is reasonable), an employee who is refused further time off once the limit on pay has been reached would not be able to bring a claim. In practice, many employers will pay their employees in excess of the statutory maximum entitlement as a matter of policy


Payments on redundancy


An employee is entitled to receive notice of termination of their employment. This will be either their contractual notice or statutory notice (roughly a week for each year of employment, subject to a maximum of 12 weeks' notice after 12 years' employment), whichever is greater.


In addition an employee with at least two years' service at the date of dismissal is entitled to receive a statutory redundancy payment calculated as follows:


Age factor x complete years of continuous service x week’s pay


The correct age factor is determined as follows: n one and a half weeks' pay for each complete year of service in which the employee was aged 41


n one week's pay for each complete year of service in which the employee was aged 22-40


n half a week's pay for each complete year of service in which the employee was under the age of 22.


The figure used for weekly pay is capped at £525 and the length of service is capped at 20 years.


Employees are also entitled to receive pay in respect of any accrued but untaken holiday pay.


In summary – A redundancy process is undoubtedly an unpleasant thing to go through, but understanding your rights as to what you can and can't do can make things significantly easier and often improves the outcomes for all concerned.


If you would like more information or advice relating to redundancy or settlement agreements, please contact Chris Cook 01727 798089 or Keely Rushmore 01727 798046 at SA Law salaw.com


30 FOCUS The Magazine July/August 2019 www.focus-info.org


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