If I get made redundant what are my rights?

Redundancy is the most common reason people lose their jobs in the UK. I’ve been through numerous rounds of ‘downsizing’ over my working career (I’m now freelance, which comes with its own problems). That doesn’t change the fact that the redundancy process can be upsetting and the source of a great deal of stress, particularly if money is tight.

Redundancy and your rights

The most important thing to do is not to wait for the axe to fall. Get informed.

The process of redundancy varies considerably depending on the number of people who are losing their jobs and the size of the business that’s downsizing. You can find out more about your rights on the Gov.uk website by typing ‘redundancy and your rights’. www.gov.uk/redundancy-your-rights

That advice is a little stark for my taste. However, there are some amazing free organisations that have much more accessible and helpful guides, along with links and sometimes helplines too. These include Citizens Advice, ACAS, Money Helper and MoneySavingExpert.

How much money am I entitled to?

Statutory redundancy pay is what you are entitled to by law and is normally given if you’ve been employed for two years or more. However, what you get is also based on your age. This works out current at:

• Employed when under 22: half a week’s pay for each full year you worked.
• 22 to 41: One week’s pay for each full year you worked.
• 41 and over: One and a half week’s pay for each full year you worked.

Statutory redundancy is capped at 20 years and a maximum of £719 a week up to a £21,570. You can calculate what you might be entitled to on the Government website too: www.gov.uk/calculate-your-redundancy-pay

Your employer may have a more generous redundancy package so check your contract. This is known as ‘contractual redundancy’.

How much notice would I get?

The statutory notice periods are:

• Employed from one month to two years: one week.
• Between two to 12 years: One week for each year.
• Over 12 years: 12 weeks

Your employer may give you longer notice periods. Your pay should continue through the notice period and should not drop to the statutory levels. If your contract says you can be paid ‘in lieu of notice’ that means they can let you go, but they still have to pay you during the notice period.

Another common term you may encounter during redundancy is ‘gardening leave’. This means you are not actually working for your employer, but you are legally still employed, which means you can’t start a new job during this period, you might be recalled and you have to stick to your work contract rules.

What about my holiday paid leave?

You should still be able to take paid holiday leave during your notice period… if your employer says it’s okay. You may be asked to take your holiday entitlement during this period. Your employer can make you do this, but must give you two days’ notice for every day of holiday they want you to take. So if you have nine days holiday, they must give you 18 days’ notice in advance of when they want you to take the holiday.

Any untaken holiday leave must be paid too, though this is often widely misunderstood by employers. Push back if you are told you will lose the holiday pay when you leave.

What if you’re on maternity/sick leave?

Your redundancy pay should still be based on your normal wages if you’re on maternity or sick leave, even if you’re currently being paid less than your usual wage because of the time you’ve taken for the leave itself.

Your HR team or the business itself should ensure that you are fully involved in any consultation and decisions made about your job while you are off work.

Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist, read more from him at this link.