We’ve heard a lot about redundancy in the last year. Thanks to the Covid-19 crisis, people have been made redundant in record numbers. But redundancy is not a new concept in the working world.
Today we’re going to demystify all things redundancy. Whether you’re facing it right now or just worried about it in the future, being armed with all the facts can help you.
What is Being Made Redundant?
Redundancy, or being made redundant, is one of the ways you can lose your job in the UK. It refers to an employer cutting jobs either for economic reasons, or because certain roles are no longer needed.
Some of the main reasons for redundancy include:
- Technology has made a job obsolete
- The employer is taking the business in a different direction, meaning certain jobs are no longer relevant
- The business is closing down or moving to another location
- The employer needs to cut staff numbers to save money
Employers should (and usually will) take steps to avoid redundancies if they can. But sometimes, they are simply a fact of the working world. Redundancy is not the same as being fired or dismissed for reasons related to performance or conduct.
How Are People Selected for Redundancy?
Being made redundant can feel very personal. But it usually isn’t! Employers select people for redundancy based on numerous different factors and they may not always be entirely clear.
Sometimes a person will be made redundant because their specific role is being eliminated. In other circumstances, particularly when many employees do a similar role, the employer will have to decide who to keep and who to make redundant.
Employers are allowed to make redundancy selections based on criteria including:
- Skills, qualifications and aptitude
- Standard of work and/or performance
- Attendance
- Disciplinary record
However, employers are not allowed to make redundancy selections based on several legally protected criteria. These include protected characteristics (such as race, disability, age, gender, or sexual orientation,) trade union membership or non-membership, pay and working hours, pregnancy and maternity, or on the basis of being a part-time or fixed-term employee.
Voluntary vs Compulsory Redundancy
Sometimes, when an employer is looking to cut down their workforce, they might allow people to volunteer to be made redundant. They will usually offer a financial incentive in the form of an attractive redundancy pay package to encourage people to volunteer.
Only you know if voluntary redundancy is right for you. If you were thinking of changing jobs soon anyway or are excited at the opportunity to do something different, it might be for you. Remember that volunteering for redundancy doesn’t necessarily mean you will be selected, especially if lots of people apply.
Compulsory redundancy occurs when people are made redundant without volunteering.
What Are Your Legal Rights Around Redundancy?
Your employer must treat you fairly when you’re being made redundant. This means that there are certain legal requirements they must meet.
You must be given reasonable notice if you’re being made redundant. Under the current legislation, this means 1 week’s notice if you have worked for your employer for less than two years, a week’s notice for every year employed up to 12 years, and 12 weeks if you have worked for them for over 12 years.
If this provision is included in your contract, your employer is allowed to ask (or require) you to physically leave earlier by offering you pay in lieu of notice. This is sometimes colloquially called “gardening leave.” Employers can use this to protect their interests if they feel the departing employee poses a risk, or can offer it as a kindness to allow the employee time and space to come to terms with the redundancy. Gardening leave gives you the opportunity to search for new jobs, but you won’t be able to actually start a new contract until your redundancy notice period is over.
If you’ve been employed for at least two years, you’ll also be entitled to redundancy pay. Statutory redundancy pay requirements are as follows:
- Half a week’s pay for each full year you were under 22
- One week’s pay for each full year you were over 22, but under 41
- One and half week’s pay for each full year you were 41 or older
The government website has a useful redundancy pay calculator you can use to see what you will be entitled to. Remember that these are legal minimums – some employers will pay more.
Who Can Help You?
If you’ve been made redundant or you’re facing it soon, you might be reeling and wondering where you can go for support.
Your employer might be able to offer support during your notice period, perhaps in the form of an Employee Assistance Programme. If you’re a member of a union, contact your representative for support. They’re there to help you!
Finally, don’t be afraid to seek out support from family, friends, colleagues, and even a professional like a therapist. Redundancy is hard and can be a big blow to your confidence, but you will get through it.
What Next?
First, try not to panic. Redundancy isn’t a reflection on you, and it certainly isn’t the end of your career.
You’ll probably need to start looking for new jobs. Try to take a breath and don’t be tempted to apply for anything and everything. A few high-quality applications are better than spamming your CV to every company you can think of!
During your notice period, your employer should allow you reasonable time off to look for new jobs and attend interviews.
Don’t be afraid to be upfront about being made redundant if you’re asked why you are looking for a new job. It’s nothing to be ashamed of, and no good employer will count it against you. That’s true at any time, but especially during the pandemic when redundancies are at an all-time high.
Don’t Let It Define You!
This is perhaps the most important piece of advice we can give you. Redundancy is hard and stressful, but we promise you will get through it and come out stronger on the other side. It doesn’t have to define you or your career.
