Redundancies On The Rise

According to figures from the Office for National Statistics, the total number of jobless is 1.8million, rising by 164,000 in the three months to August, the most rapid increase since June 1991.

Those claiming Jobseeker's Allowance rose by 31,800 over the past month, and it is being predicted that the number of unemployed could break the two million mark by Christmas.If the worst happens to you, you are entitled to be given notice based on how many years you have been working for the company - one week per year up to a maximum of 12 years.

To qualify for redundancy you must have two years' service or more. Redundancy pay is calculated as half a week's pay for each year worked if you are between 18 and 21; one week's pay up to and including the age of 41; and thereafter one and a half weeks pay (subject to a maximum of 20 years). The statutory redundancy payment is capped at £330 a week.

Sometimes a redundancy can be concluded by means of a compromise agreement. This is where the employer draws up an agreement for the employee to take to an independent legal adviser to assess whether what is being offered financially is appropriate. This is also a good opportunity for you to take legal advice - usually at your employers expense.

In a redundancy situation there are five main obligations on employers:

• The employer must show that there is a genuine redundancy
• The employer's criteria for selection must be objective and fair
• The employer must consult properly
• The employer must comply with the statutory dismissal procedures
• The employer must consider suitable alternative employment

If you feel that you may have been unfairly selected for redundancy you must act quickly as once dismissed you have less than 3 months within which to issue tribunal proceedings.

For a copy of our free redundancy information pack please email Kate@dsmlegal.co.uk with your contact details.