Contributing 

Can you be made redundant due to length of service?

Leia Doyle

Can you be made redundant due to length of service?

You can select employees based on their length of service (‘last in, first out’) but only if you can justify it. It could be indirect discrimination if it affects one group of people more than another. Do not rely on length of service as your only selection criteria – this is likely to be age discrimination.

How many years service do you need for redundancy?

2 years
You’ll get statutory redundancy pay if you: have been employed by your employer for 2 years continuously. have lost your job because there was a genuine need to make redundancies in your workplace. are a particular kind of worker called an ’employee’ – this includes part-time employees.

How do you calculate redundancy?

How is my redundancy pay calculated?

  1. half a week’s pay for each year of employment up to the age of 22;
  2. one week’s pay for each year of employment between the ages of 22 and 40;
  3. one and a half week’s pay for each year of employment over the age of 41;
  4. a maximum of 20 years’ employment can be taken into account; and.

What counts as continuous service for redundancy?

Continuous service is worked out in months and years, starting with the date you began work for your employer. If there is a break in your employment then normally none of the weeks or months before that date will count as continuous service.

Can companies use last in first out for redundancy?

LIFO, or last-in-first-out can be an acceptable method for redundancy selection, although it runs the risk of indirectly discriminating against young people who may have the shortest length of service.

Is redundancy pay calculated on continuous service?

The Redundancy Payments (Continuity of Employment in Local Government, etc. An employee must have at least two years’ continuous service to qualify for a redundancy payment, and the Modification Order means that any continuous service with bodies listed in the Order will also count towards continuous employment.

How is continuous service calculated?

In general, continuous period is calculated by adding together “qualifying weeks”. These are weeks (or part of one) in which the employee’s relationship with the employer is governed by a contract of employment. Weeks when the employee is on holiday or on sick leave will not usually break continuous service.

How does continuous service work?

Introduction. Service is a period during which an employee is employed by an employer, but does not include certain excluded periods (see below). Continuous service is a period of unbroken service with an employer by an employee. An excluded period does not break an employee’s continuous service with their employer.

How much redundancy do you get a year of service?

For each full year you’ve worked for your employer, you get: up to age 22 – half a week’s pay. age 22 to 40 – 1 week’s pay. age 41 and older – 1.5 weeks’ pay.

How long do you have to be at a company to be made redundant?

You can be made redundant if the business closes down where you work. This is a genuine reason for redundancy. If you’ll have been working for your employer for at least 2 years by the time you leave your employer should see if they can offer you a different job.

What entitlements do I get when made redundant?

This can include:

  • wages – up to 13 weeks unpaid wages (capped at the FEG maximum weekly wage)
  • annual leave.
  • long service leave.
  • payment in lieu of notice of termination – maximum of 5 weeks.
  • redundancy pay – up to 4 weeks per full year of service.

    Do you get paid annual leave when made redundant?

    When you are made redundant, you are also entitled to any holiday pay you are owed for untaken holiday days. However, be wary – if you have taken MORE days than your entitlement your employer is within their legal rights to dock this from your final pay settlement.

    Can a person with less than 2 years of service be made redundant?

    We are unfortunately looking at making some of our staff redundant across our 4 units. The “last-in-first-out” rule will most likely apply. This will mean that majority of staff selected will be those with less than 2 years’ service and therefore not entitled to redundancy payment.

    When does an employer have to follow a fair redundancy process?

    Your employer has to follow a fair redundancy process if you’ll have worked for them for at least 2 years by the time your job ends. You should be invited to at least 1 individual meeting with your employer to discuss redundancy.

    How does redundancy pay work in the UK?

    A redundant employee also has the right to a written statement setting out the amount of redundancy payment and how you worked it out. These are based on an employee’s age and length of employment and are counted back from the date of dismissal. 1.5 weeks’ pay for each full year of employment after their 41st birthday

    Can a company make you redundant while your job still exists?

    Reasons for redundancy 1 The job you were hired for no longer exists 2 The business you work for has ceased trading or is closing down 3 The business is cutting costs, and as a result has made your position redundant 4 New technology has been developed or implemented that means you’re no longer required