Kristen Zanoni  |  July 28, 2020

Category: Covid-19

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Woman comforts man sitting on curb with box of office items - redundancies

Job losses have soared since the beginning of the pandemic. More and more businesses feeling the financial strain of the COVID-19 crisis and are letting workers go.

Many people are being made redundant as a result of workplaces shrinking down the number of essential staff members, the Guardian reports. 

Redundancies are not the same as being fired.

Simply put, businesses can reduce the number of workers by closing down job positions and letting those workers go. Anyone can be chosen to be redundant.

As redundancies are getting more common, it is important to know your rights

In order to select redundancies fairly, many companies will ask for redundancy volunteers. If a worker volunteers, the company can select them and offer redundancy pay. Many firms will choose redundancies based on seniority, as in those who have been working for a company longest are the last to be selected. New employees are more likely to have their jobs closed. 

Employees who are selected for redundancy still hold legal rights, the Guardian says.

According to the BBC, it is illegal for a person to be made redundant solely for the following reasons: 

  • Age
  • Gender
  • Religion
  • Pregnancy 
  • Sexual orientation
  • Race
  • Known whistleblowers
  • Trade union members 
  • Workers who asked for holiday or maternity leave 

Graphic of street sign reading "lost your job" - redundanciesMany workers have been furloughed during the coronavirus pandemic, according to the UK government. Workers can still be made redundant while furloughed, although legal rights still apply.

Workers should also know that redundancies must be given appropriate notice.

Redundancy notice is based on the length of employment at a firm. 

  • If you have been working for your employer for up to two years, you are entitled to at least a week’s notice. 
  • If you have been working for your employer for between two and 12 years, you are entitled to one week’s notice for each year of employment. 
  • If you have been working for 12 or more years with the same employer, you are entitled to 12 weeks’ notice.

If your job is closing, you have the right to have a consultation with your employer to discuss redundancies, according to government guidelines.

During the consultation, your employer will explain the redundancies and possible alternatives.

If there are 19 or fewer job closings, the firm does not need to follow any specific consultation rules.

If an employer is letting go of 20 to 99 redundancies, there needs to be a consultation at least a month before anyone’s job is closed.

If there are 100 or more redundancies, there needs to be a consultation at least 45 days before anyone is let go. 

A thorough consultation must include: 

  • The reasons for redundancies;
  • How to avoid redundancies or keep them low; and
  • How to decrease the impact on the affected employees.

Many employees also have rights to redundancy pay. If you have worked for at least two years with your employer, you are entitled to redundancy pay.

Redundancy pay is calculated by several factors, including your age, length of employment and salary. 

  • If you are under 22 years of age, you can count on at least half a week’s pay for each full year employed. 
  • If you are between 22 and 41, you will be given a full week’s pay for each full year employed.
  • If you are 41 and older, your redundancy pay equals one and a half weeks of pay for each year of employment. 

For Northern Ireland residents, firms are not required to pay more than £16,140, or £16,800 total.

If you are dismissed from your position and you are owed holiday pay, you have the right to be paid for it, too.

If your employer has gone out of business completely, you will be given redundancy pay through the government.

Has your job been made redundant during the pandemic? Did your employer handle it properly? Let us know in the comments.

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