Redundancy is a form of dismissal from your job, caused by your employer needing to reduce the workforce. If you are going to be made redundant from your job, you should be treated fairly by your employer and there are certain steps they would be expected to follow. You may also be entitled to a redundancy payment.
Redundancy payment
You have the right to a redundancy payment if you are an employee who has worked continuously for your employer for at least two years and you are being made redundant. Redundancy pay is also due when a fixed-term contract of two years or more expires and is not renewed because of redundancy.
When you are paid a redundancy payment your employer must give you a written statement showing how your payment has been calculated. You do not have to claim redundancy pay from your employer; they should automatically pay it to you.
If your employer does not give you redundancy pay when you are entitled to it, you should write to them asking for payment. If your employer still refuses to pay you or cannot make the payment you could make an appeal to an Employment Tribunal.
Notice pay
As well as a redundancy payment, your employer should pay you through your notice period, or payment in lieu of notice depending on your circumstances. Pay in lieu of notice is money paid to you by your employer as an alternative to being given your full notice. Details of the notice period will be in your contract.
Insolvent employers
If your employer is declared insolvent or cannot pay your redundancy pay, you can apply for a direct payment from the National Insurance Fund. To do this you must first write to your employer asking for your redundancy pay. If they are still unable to pay you then you should fill out a RP1 form available from the Insolvency Service.
Employees not entitled to redundancy payment
Some employees are not entitled to receive redundancy payments. In some specific situations employees that should normally be entitled to redundancy pay, might lose this right with their employer. For more information on payment following redundancy or other related subjects click on the web link below.
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