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Redundancy, when is it and when isn't it redundancy

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  • Redundancy, when is it and when isn't it redundancy

    Hi, I have a family member who has been told, over the phone, that they are being made redundant and they will get holiday pay from last year (not this year accrued to date but not taken) and 1week redundancy pay - they have been working there 1yr 9months) their employment contract stipulates that the contract can be terminated with 1months written notice - which one takes precedence is it 1week redundancy pay or should they be getting the 1week redundancy + the notice stipulated in the contract?

    The business is closing for 1month and will then be reopening, they have been offered hours when the business reopens, so is this truly redundancy? it smells fishy to me?

    Obviously my relative is a little devastated and feels that they are being messed about but before advising them further I want to make sure we are on a decent footing to challenge what has been mentioned, verbally only, so far....

    I believe they are entitled to holiday pay from last year, that has been formally carried over
    Holiday pay for year to date less any holiday taken
    1 week redundancy notice pay
    1 month in lieu of notice pay

    Would be interested in thoughts and input on this before we challenge the employer.
    Tags: None

  • #2
    Unless the company has a contractual redundancy policy which enhance statutory redundancy payment, there is actually no legal requirement for the company to pay any redundancy pay as your fmaily member has less than 2 years service.

    If they are not being required to work their notice then they should be paid whatever is in their contract of employment which appears to be one month from what you have stated in your post.

    They are also entitled to acrrued but untaken holiday up to the date of termination.

    However, in all of this the company should be undertaking a proper consultation process. How many people are being made redundant? What consultation has taken place to date with your family member?
    If you would like a one-to-one expert consultation with me on your employment issue than I can be contacted by emailing admin@legalbeaglesgroup.com

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