Redundancy Rights

What are Redundancy Rights?

Redundancy rights refer to an employee’s right to be paid for time worked previous to his or her dismissal. Regardless of the reason for termination, an employee still legally maintains the right to be paid out their accrued pay. If they have been made redundant by their respective employer, the individual may exercise an assortment of rights, including their redundancy entitlement. Failure to receive redundancy payments could result in the employee making a claim for a wrongful dismissal to his or her local employment tribunal. The only exception in this situation is that employees who are dismissed for gross misconduct (such as stealing from the company) will not be entitled to be paid in lieu of a notice.

Examples of Redundancy Rights:

• With the exception of gross misconduct or other fair dismissals, the employee, given the exercise of his or her redundancy rights should be considered and if relevant, paid in a timely manner for the following funds:

o Final Pay (all days worked prior to the dismissal)

o All outstanding pay, including overtime

o Bonus, if applicable

o Pay in lieu of notice, particularly if the employee is not permitted to work their notice period

o Redundancy payments if due under either statute or the employment contract

o Statutory maternity or adoption pay—if the employee leaves during or before maternity or adoption pay period

Although the above situations are fairly self-explanatory, redundancy rights can be complex. An employee’s redundancy rights to receive payment depend on the employee’s work status, their age, salary and their time of service at the particular firm. It is crucial that both the employee and his or her employer consult an employment solicitor about their respective redundancy rights to ensure they are parallel. Other forms of redundancy rights that an employer may be required to make include pension refunds and other retirement payments. In some instances, the employer may deduct from the employee’s redundancy rights; this will include any outstanding amounts for pay income tax or national insurance contributions. If the employer fails to fulfill the employee’s redundancy rights a breach of contract is realized; if this happens to you it suggested you visit an employment solicitor to inquire about filing a wrongful dismissal claim.