WO toolkit 2012 complete.pdf - GMB

SECTION 5.36
GROUP SIX
REDUNDANCY
36. How do I qualify for a redundancy payment?
To qualify for a statutory redundancy payment you must:
• Be an employee; and
• have two years continuous employment with your employer at the date of dismissal; and
• have been dismissed by reason of redundancy.
Dismissal occurs where:
• Your contract has been terminated by your employer with or without notice; or
• you terminate your contract of employment with or without notice because of your employer’s
unreasonable conduct(constructive dismissal); or
• you are employed for a fixed term and your contract expires but is not renewed.
No dismissal has taken place if your contract has been renewed or you are engaged under a new
contract of employment and the offer is made to you in writing before the end of your contract and is
to take effect within four weeks from the end of your original employment.
Redundancy would occur if the dismissal is wholly or mainly because:
• Your employer has stopped or intends to stop business in the place where you are employed; or
• your employer has stopped or intends to stop business for the purposes for which you are
employed; or
• your employer’s need for people carrying out work of a particular kind in the place where you work
has stopped or reduced or is expected to do so.
You may lose your right to a redundancy payment if you unreasonably refuse an offer of suitable
alternative employment made before the end of your original contract.The new job must begin at
latest four weeks after your original employment ends.Whether the offer is a suitable alternative to
your original job depends on factors such as location,pay,hours,holiday,grade,status and travel to
work.Even if it is suitable,the employee might still get a redundancy payment if he/she has good
grounds for turning it down e.g.personal circumstances or problems that make it reasonable to do so.
If in doubt,you can try the new job for up to four weeks before deciding whether to accept it or not.
There are special,complex rules covering workers who are laid off or are on short time.In summary,lay
off happens when an employee gets no money because there is no work.Short-time means getting less
than half a week’s pay.When either happens for at least four continuous weeks of for at least six weeks
out of thirteen,the employee can write to their employer claiming redundancy pay.There are then very
tricky rules about notices and counter-notices.If this happens to you,contact your GMB
representative for further information.
Your employer should give advance warning of possible redundancies and consult with the union
and individuals likely to be affected.
REMEMBER: there may be more than one person affected by this issue.
Consider calling a meeting to advise,recruit and organise.