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Redundancy
Pay
If
you have been employed for more than two years with the same
employer, you are entitled to statutory redundancy pay, calculated
according to the length of time you have been with that employer.
Most firms,
however, offer more than the statutory amount - the norm being
2 to 4 weeks' pay per complete year of service.
Right
to Notice
You
also have a statutory right to notice: normally one week per
year of service, or longer if your contract of employment
specifies so. During this period of notice, you will be entitled
to have paid time off in order to look for another job.
Leaving
Immediately
Many
companies will make a lump sum payment to cover salary to
the end of your notice period, and then ask you to leave the
company immediately.
If this
is the case, you should ensure that non-salary benefits continue
until the end of the notice period. These include employers'
pension contributions, company car, company health scheme
etc.
Holiday
Leave
You
will also be entitled to accrued holiday pay in lieu of taking
a holiday.
Written
Statement
You
are entitled to a written statement of how your package was
calculated.
Most benefits,
such as pensions, company car and share option schemes, cease
when the employment ceases.
You should,
however, read your contract carefully as there may be provision
for you to be able to continue schemes yourself.
Alternative
Work
If
you do not wish to go, you should ask for alternative work
within the company. If there are any available jobs, you have
a legal right to a trial period without endangering the compensation
package which the firm may offer you.
Redundancy or Unfair Dismissal?
In
some cases, the employee has not been made redundant but has
been unfairly dismissed.
There are basically three types of unfair dismissal:
Job
redundancy, where there has been a closure of the employer's
business.
Employee
redundancy, where there is a lack of work or the nature of
the work has changed.
Place
of work redundancy where the business is relocating.
If the
redundancy does not fall under any of the above categories,
it can amount to unfair dismissal.
Failure
to consult with employees about proposed redundancies can
also render the dismissal unfair.
"The
essence of fair redundancy dismissal is fair selection, plus
warning and consultation".
There
are, however, two special cases:
(1) It
is automatically unfair to select any employee for redundancy
for a "trade union" reason.
(2) It is automatically unfair to select any employee for
redundancy because she is pregnant.
If you
feel you have been unfairly dismissed, you should seek legal
advice immediately. You have only three months from the date
of the end of your employment to bring a claim before an Industrial
Tribunal.
Checklist
Ask
for a written statement of how your final pay was calculated.
Ensure
non-salary benefits continue until the end of the notice period.
Register
as unemployed to ensure no break in National Insurance Contributions.
Notify
your Bank and Mortgage Company.
Consider
whether it is redundancy or unfair dismissal.
Remember
- time is limited, so seek advice from us as soon as possible.
For further
help and advice on redundancy, contact our litigation department
on
Maghera: 028 796 42224
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