Employee Redundancy Rights

Employee rights help prevent unfair layoffs.

The workplace may not always be your favorite place, but many still prefer having employment they don't like over missing employment they don't have. Redundancy rights give employees a measure of protection from unfair dismissal.

Distinction

Laws in the United Kingdom offer workers protection if their employer dismisses them when deeming the employee redundant. This protection, named redundancy rights, differs from employee rights existing in the United States. U.S. employers typically offer employees at-will agreements, under which they can dismiss employees without explanation or compensation.

Considerations

Redundancy is when a company can't afford to pay for a certain position anymore, or when it no longer needs the position. In these situations, employers may rightfully dismiss an employee without fearing an accusation of unfair dismissal. But if an employer fabricates the redundancy claim, a dismissed employee may take legal action against his former employer.

Details

If a U.K. employee works for an employer for at least two years, he should receive a redundancy payment if he is dismissed. This payment comes from the employer and must match the legal minimum, but the state government will pay if the employer has gone bankrupt.

References

• World Services Group: Redundancy Rights and Wrongs
• Work Smart: Your Rights - Redundancy
• "Employment Law 2008"; James Holland, Stuart Burnett; 2008.
• Work Smart: Your Rights - I Have Been Made Redundant