Redundancy
The threat of redundancy affects many UNISON members as local and central government departments aim to meet cost-cutting targets by reducing staff.
A redundancy situation is defined by law, but it is most commonly where you are dismissed from your job because the business requires fewer employees to carry out work of a particular kind.
Unlike other forms of dismissal, it is due to the needs of the business and is not because there is a specific issue with you.
Dismissals can be fair or unfair. However, as long as your employer follows the rules and doesn’t unfairly target you, it is unlikely that a tribunal will find that your redundancy dismissal amounted to an unfair dismissal.
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Redundancy payments
Some contracts provide for an enhanced redundancy payment. The terms will confirm how this must be calculated. Otherwise, a qualifying employee will be entitled to a statutory redundancy payment where the relevant criteria are met.
If you are made redundant and have worked for your employer for at least two years you will (in most cases) be entitled to some form of redundancy payment. The right to a statutory redundancy payment for a qualifying employee is protected, even where the business closes.
The amount you get for a statutory redundancy payment will depend on the length of time you have been in your job, your age and how much you earn.
If you qualify for a redundancy payment, the minimum amount you will receive is calculated like this:
- For each complete year of employment after your 41st birthday you should get one-and-a-half weeks’ pay.
- For each complete year of employment after your 22nd birthday, that is not covered by the previous paragraph, you should get one week’s pay.
- For every other complete year of employment not covered by either of the two previous paragraphs, you should get half a week’s pay.
But you can only count:
- to the last 20 years’ service;
- your pay up to the weekly limit, which is currently £719.
A week’s pay is the average amount someone earns each week in the 12 weeks prior to receiving a redundancy notice.
The first £30,000 of your redundancy payment is tax-free and you can still apply for Jobseeker’s Allowance if you receive a redundancy payment.
You may not be eligible for redundancy pay if your employer offers you a suitable alternative job, and you do not have reasonable grounds for refusing to accept the job.
The GOV.UK calculator will help you work out your redundancy entitlement.
Fighting public sector redundancies
Thousands of public sector workers who have devoted their working lives to serving their communities are now facing an uncertain future. We don’t believe public sector finances are in the terrible state we are told they are in, and we believe that difficult economic times call for more public sector workers, not fewer.
UNISON is committed to helping public sector workers in their fight to keep doing their vital jobs.
Unemployed Member status
If you are made redundant from work, you don’t have to lose your connection to your trade union and the collective support of your fellow members.
Members dismissed, made redundant, having accepted a compromise agreement or having resigned as an alternative to dismissal from employment, can apply for Unemployed Membership of UNISON within six months of their loss of employment, for two years from the date of dismissal, redundancy, agreement or resignation.
Unemployed Member status will give you access to ongoing support and representation from your union, and member benefits including the learning opportunities available from UNISON College.
To become an Unemployed Member, you need to notify your branch in writing within six 6 months of your loss of employment. The cost is £4 per year for a maximum of two years.
You can also contact UNISONdirect on 0800 0 857 857 for assistance with your membership.
External advice and support
Frequently asked questions
Your employer must also consult you before making you redundant and follow a fair procedure when selecting who is to be made redundant – if they don’t do this, they are in danger of unfairly dismissing you.
Legal disclaimer
The information contained within this article is not a complete or final statement of the law and is based on the laws of England, Wales, Scotland and Northern Ireland.
While UNISON has sought to ensure that the information is accurate and up to date, it is not responsible and will not be held liable for any inaccuracies and their consequences, including any loss arising from relying on this information. If you are a UNISON member with a legal problem, please contact your branch or region as soon as possible for advice, or for non-employment matters call UNISONdirect.