Redundancy has been in the news in the last few years far more than usual due to the recession and its aftermath. Almost everyone will know someone who has been made redundant – whether it is a family member, friend, neighbour or colleague. Whilst some people are happy to take voluntary redundancy – as has been the case recently in the army with over 900 people applying for redundancy when only 500 volunteers were asked for – in most cases people do not want to be made redundant, and it can have a devastating impact on their lives.
Despite an encouraging set of unemployment figures released in June 2011, which showed that unemployment fell by 88,000 in the three months leading up to April 2011, unemployment is still 2.43 million, or 7.7%. Although this is much less than the 11.9% unemployment experienced during the recession of the early 1980s, this is of little comfort for those who have lost their job in the last few years. With growth still sluggish to say the least, despite some green shoots of recovery, opportunities for finding a new job are still relatively few and far between.
The situation is particularly tough for the over 50s, who having been in work for most of their adult lives, suddenly find themselves without a job and that it is very hard to acquire a new one, particularly if they only have a few years left until retirement. Many employers are reluctant to take on and train a new member of staff knowing that they will only be part of their workforce for a short period of time, despite the increase in the pension age. Figures have shown that 77% of over 50s who have been made redundant in the last 3 years have had to take a pay cut in order to get back into work.
There are a lot of solicitors and law firms out there which can advise you on redundancy, such as Employment SOS. For example, if you haven’t been genuinely made redundant then you may be able to claim for unfair dismissal. Reasons for redundancy include the business closing or partially closing, the business no longer carrying out the work that you were employed to undertake, new technology replacing your work role, or your role being cut because the business needs to make financial cuts. You having done something wrong, not being very good at your job, or your bosses not liking you is not a cause for redundancy. Your employers are also under a number of legal obligations when it comes to redundancy, including consulting with you, selecting who should be made redundant fairly and objectively, considering all alternatives to redundancy, giving you notice, giving you redundancy pay. If a company intends to make 20 or more employees redundant within a period of 90 days then the business must consult the workforce as a group.
