Employment law help - Redundancy

Redundancy definition

Broadly, you will be redundant if you are dismissed in one of three situations:

1. the business where you work has closed down;
2. the place where you work has closed down;
3. the needs of the business to employ people to do your job have ceased or diminished.

Redundancy payments

If you are redundant you are entitled to formal notice to terminate your employment plus a redundancy payment at the rate of one week’s pay for every year of employment up to age 41 and one and a half week’s pay for every year of employment after 42. A week’s pay is capped and the maximum number of weeks you can claim as a redundancy payment is 20.

Redundancy time limits

To claim a redundancy payment you have to bring a claim in the Employment Tribunal within six months of being dismissed. If however you think that the redundancy is unfair, the time limit is three months from dismissal.