Redundancy Flashcards
Define ‘Redundnacy’
Redundancy is merely a particular reason for dismissal, one of the ‘fair’ grounds for dismissal covered by the Employment Rights Act 1996.
This will arise where either the business is being shut down entirely, the location of the business is being shut down, the particular job disappears or where the number of people doing the job is being reduced.
Who are ACAS?
Advisory, Conciliation and Arbitration Service
What is ACAS ‘preferred practice’ in the event of redundancy?
ACAS preferred practice is that employers should do everything possible to avoid compulsory redundancies because loss of job can have a major consequences.
If possible the employers should seek voluntary redundancies, offer redundancy packages and give as much notice as possible. Selection should be sensitive in nature; the general approach is ‘last-in, first out’.
What are the qualifications for redundancy payment?
To qualify for redundancy payment employees must be at least 18 years old and have worked for the employer for at least 2 calendar years.
List 5 job categories exempted from redundancy payments
Civil servants and other public employees;
Persons employed as a domestic servant by a relative;
Share fishermen;
Fixed term contract worked who have excluded right to redundancy payment;
Persons employed outside of Great Britain.
What are the 3 factors in calculating redundancy pay?
Statutory redundancy pay is based upon Age, Salary and length of continuous employment.
What is the forula for working out redundancy pay?
a) ½ week’s pay for every year worked between ages 18 - 20
b) 1 week’s pay for every year worked between 20 - 40
c) 1 ½ week’s pay for every year worked between 40 - 65
What is the maximium number of years that can be claimed?
The maximum number of years which can be claimed is 20, no matter how long a person has worked for that employer.
Is there a pay cap?
All claims are subject to a pay cap of £475.
