Hashim
Teaching

hi everybody on this lovely forum.
i am new to this environment and am trying to understand it and need the support of everybody which i am confident should not be the problem.
i am teaching hrm to the bba students and need material on "redundancy", if somebody could help i shall be thankful.
sincerly,
hashim

From Pakistan, Islamabad
Hi, :D

I am sending you some material on redundancy copied from various sites.

What is redundancy

If you are facing redundancy and are a member of a trade union, the trade union is the first place you should go to for help.

Redundancy is a form of dismissal. Therefore, in order to claim redundancy, you must normally have been dismissed from your job. You must have been dismissed because you are genuinely redundant, see below, otherwise you will have been unfairly dismissed.

Has the worker been dismissed

If you resigned, you will not be redundant. You may, however, be able to argue that although you have resigned, you have actually been dismissed. This is called constructive dismissal and occurs when an employee has been put in a position where you have no choice but to resign, for example, you have been made to resign under pressure or you have been made to take another job which is not suitable.

If you volunteered for redundancy, this will usually count as a dismissal.

There are special rules which apply if you have been dismissed because the business has transferred to a new owner. There are also special rules which apply if you think you may have been dismissed or chosen for redundancy because of discrimination. For example, if all the people chosen for redundancy are women, this would usually be sex discrimination and unfair dismissal – see under heading Who should be chosen for redundancy for more information about discrimination.

Also, when your employer carries out redundancies, they must not discriminate against older or younger employees. This would be age discrimination. However, they are allowed to choose you for redundancy based on how long you've been working for them.

Is the employee genuinely redundant

Employers often claim an employee has been made redundant when the employee has actually been unfairly dismissed. This may be to avoid the employer having to pay compensation for unfair dismissal. If any of the following apply, you are likely to be able to claim unfair dismissal:-

if there is not a real redundancy, see below; or

if you have been unfairly selected for redundancy even if it is a real redundancy (see under heading Who should be chosen for redundancy). In such cases, you may be able to claim both compensation for unfair dismissal because of the nature of the dismissal, and redundancy pay, because you are also redundant; and/or

if you have been dismissed because of a discriminatory reason, such as your employer claiming you are redundant but you feel you are actually being dismissed because you are pregnant (see under heading Who should be chosen for redundancy).

What is a real redundancy

A dismissal will only be a genuine redundancy if:-

the employer’s business, or part of the business, has ceased to operate; and/or

the employer’s business has moved to a different place; and/or

the business’s need for work of a particular type to be done has ceased or diminished.

Examples of when someone may be genuinely redundant include:-

the work the person does is no longer needed, for example, the employer’s business is failing or the employer is moving into a new line of business which no longer needs the person’s skills, or a new process is introduced which means the job is unnecessary (see under heading Redundancy situations)

the employee’s job no longer exists because the work is being done by other employees (see under heading Redundancy situations)

the workplace has closed because the employer has ceased trading but is not insolvent (see under heading Redundancy situations)

the employer’s business, or the work the person is doing, moves to another area (see under heading Redundancy situations)

the person is laid off or put on short-time working

the employer’s business is transferred to a new employer (see under heading Redundancy situations)

the employer’s business becomes insolvent

the employer was the sole proprietor of the business and dies.

If you are in any doubt about whether one of the above redundancy situations applies to you, you should consult an experienced adviser, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

Sham’ redundancy

Employers often claim that there has been a reduction in the work needing to be done but this is not the real reason for dismissing someone. It is important to look at the circumstances surrounding the ‘redundancy’, as the following may indicate that the real reason for the dismissal is not redundancy:-

if your employer has recently taken on other people, this could indicate that there has not been a reduction in the amount of work to be done

if you are the only person being made redundant, or one of only a few in a large company, this might indicate that the type of work you do is still needed

if you are pregnant, a woman, from an ethnic minority, disabled, gay or of a particular religion, this might indicate you have been dismissed because of discrimination rather than because of a general need to reduce the workforce

if you had a bad relationship with your employer, this might indicate you have been dismissed for a reason other than a general need to reduce the workforce

your age. There are rules about age discrimination at work which mean that your employer isn't allowed to choose you for redundancy based on your age. But they are allowed to choose you for redundancy based on how long you've been working for them.

It is not always clear whether someone has been made redundant or not. If you are in any doubt about whether or not you have been made redundant, you should consult an experienced adviser, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

Redundancy situations

The need for the worker has diminished or ceased

A redundancy situation may arise where a business continues to operate but there is no longer a need for the skills for which the employee was taken on. For example, a person employed as a skilled carpenter and joiner to help make racing yachts was made redundant when the employer changed the business to dinghies made from fibre-glass. The employer was still in the business of boat building, but he no longer needed the skills of a carpenter/joiner as the fibre-glass was moulded.

Redundancy may also arise if an employer reorganises the business to improve its efficiency, so that fewer people are needed to do the same amount of work.

In each case, it is the need for the work you do which is in your contract which must have been reduced. Even if there is other work available for you to do, the fact that the work you were employed to do is no longer available means that you are in a redundancy situation.

If you have been told you are redundant because the need for you to do particular work has diminished, seek help from an experienced adviser as soon as possible, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB. This is because there is a strict time limit during which you must make any claim for unfair dismissal/redundancy pay to an employment tribunal.

New systems in the workplace

You may be made redundant if a new process or system is introduced into the workplace which means that your job is unnecessary. The introduction of the new system or technology will not automatically mean that someone is made redundant. You will be redundant only if the new system is the direct cause of your work no longer needing to be done. Some new systems or technology may just enable the same job to be done differently, rather than creating a different job. There would then be no redundancy.

If you have been told you are redundant because the need for your particular work has diminished, seek help from an experienced adviser as soon as possible, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by e-mail, click on nearest CAB. This is because there is a strict time limit during which you must make any claim for unfair dismissal/redundancy pay to an employment tribunal.

Who should be chosen for redundancy

Where a job disappears, or is moved, causing a redundancy, the employer must follow a recognised procedure when selecting who is to be made redundant.

Your employer must follow a set dismissal procedure before dismissing you, and this includes making you redundant (except where more than 20 employees are being made redundant – see heading Redundancies of 20 people or more). Before making you redundant, your employer must:

send you a written statement, telling you why they are making you redundant

hold a meeting with you to discuss the matter

hold an appeal meeting with you, if you want to appeal against your employer's decision.

If your employer does not follow the proper procedures, any dismissal will be automatically unfair and you will be able to make a claim for unfair dismissal to an employment tribunal (as long as you have worked for your employer for at least a year). If you win your case, the tribunal will increase the compensation awarded to you because your employer did not follow the procedure.

Procedure

In a redundancy situation, the following things should happen:

Your employer should select you fairly

You should be consulted about the redundancy

You should get any redundancy pay you are due, and be given the correct amount of notice

Your employer should consider any alternatives to redundancy

Selecting you for redundancy

Your rights to consultation

Redundancy pay

New employment and redundancy

Notice and notice pay

If there are fewer than 20 employees being made redundant then the statutory minimum dismissal procedure should be followed. If there are 20 or more, then the collective consultation procedure applies instead.

Guidance on the statutory minimum dismissal procedure from the Department of Trade and Industry (DTI) (opens new window)

Guidance on the collective consultation procedure

If an employer uses redundancy to cover up the real reason for ending your employment, or if they do not carry out the redundancy procedure properly, it may amount to unfair dismissal. The rights to redundancy payments and collective consultation are claimed separately from unfair dismissal.

Unfair dismissal

See the attached files also.

Best of luck

Prachi
:wink:

From India, Mumbai

Attached Files
File Type: ppt k_redundancy_757.ppt (219.5 KB, 276 views)
File Type: ppt redundancypay_141.ppt (127.5 KB, 270 views)

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