Employment Law

Redundancy is a fair dismissal that is a result of the employer needing to downsize their workforce. This could be due to the fact they are moving the enterprise to less costly website, discontinuing the part of the company that the employee was involved in, employing technology that indicates the employee is not needed or merely want to restructure the business since of debts or low profits.

If an employee has been dismissed for the reasons of redundancy and it cannot be proved that the employer was acting unfairly, then the employee may possibly be eligible to receive redundancy pay. There are some qualifications required for the employee to receive redundancy pay, these are that they have been working for the business for more then two years and should not have been dismissed for misconduct, refused suitable option employment or renounced their redundancy rights earlier in their employment. There is no lower age limit on claimants as lengthy as they fulfil these requirements.

There are general rules for redundancy payments which state that if a person is under 22 years of age they really should receive half a weeks pay for each and every year that they were employed. The quantity goes up a full weeks pay for people aged between 22 and 41, and for those over 41 a full 1 and a half times the full weeks pay. If the organisation that has created men and women redundant can not afford to pay their former employees what they owe them, these workers may go to the Redundancy Payments Office who will fund the payments form the National Insurance Fund. This workplace will also pay redundancy payments if the company that really should be paying them declares bankruptcy.

Redundancy payments are there to support individuals transition to their next job more simply and, as long as an employee knows their employment rights (i.e. that they have been fairly dismissed) and how a lot they are entitled to, this really should help ease the discomfort and uncertainty of redundancy.