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Redundancy Rights NI

What is redundancy?

Redundancy is when you dismiss an employee because you no longer:

carry out the business for which they are employed

carry out the business in the place where they are employed

require them to carry out work of a particular kind

RIGHTS

How much redundancy pay you get depends on your wage, how long you have worked at the company and your age. When your employer gives you your redundancy payment they must also give you a statement showing how it was calculated.

Redundant employees have a number of rights and may be entitled to receive a statutory redundancy payment (SRP).

To receive an SRP, an individual must:

be an employee working under a contract of employment

have at least two years' continuous service

have been dismissed, laid off or put on short-term working (and have a qualifying period of lay off).

Other redundancy rights

Employees under notice of redundancy also have the right to:

Be offered suitable alternative employment.

Have a trial period in the alternative employment without losing their right to an SRP.

A reasonable amount of time off to look for another job or to arrange training. This applies where the employee has been employed for at least two years. The employer does not have to pay more than two-fifths of a week’s pay, no matter how much time off they give the employee

NOTE: You won’t get this time off if you’re in the police or armed forces, or you work on a fishing boat and get paid a share of its profits

Not be unfairly selected for redundancy.

 

By law, employers must give the appropriate representatives the following information about plans for redundancies so that they can get involved in the consultation process.  

The reasons for the plans. 

 The number and descriptions of employees it plans to make redundant. 

 The total number of employees employed at the organisation in question. 

How employees will be selected for redundancy. 

How and when redundancies will be made, taking account of any agreed procedure. 

How redundancy payments will be worked out. 

Agency workers: the number of agency workers, where they are working in the business and the type of work they are contracted to undertake                                                            ( LRA)

When you get your final pay, you should check you got:               

any redundancy pay you’re entitled to (or you’ve been told when you’ll get it)

your last wages/salary

any ‘pay in lieu’ if you’re not working your full notice

any holiday pay you’re entitled to

any outstanding bonus, commission or expenses you’re entitled to

( Citizens advice)

If you feel you have been made redundant unfairly

A redundancy may also be found to be discriminatory under:  

Fair Employment and Treatment (Northern Ireland) Order 1998;  

                Fair Employment Code of Practice;  

Sex Discrimination (Northern Ireland) Order 1976;  

 Disability Discrimination Act 1995 and the associated Code of Practice;  

Race Relations (Northern Ireland) Order 1997; and  

                Employment Equality (Age) Regulations (Northern Ireland) 2006;  

 

TAX

The first £30,000 of your redundancy pay is tax free.

For any redundancy pay over £30,000, your employer will take the tax from your redundancy pay at your normal tax rate.

However, if your employer pays you your final pay after you leave your job, they’ll take the tax from your redundancy pay at the basic rate of 20%. If you pay a higher tax rate, you need to call HMRC to arrange to pay the extra tax.

(there are some exemptions)

Claiming benefits

You might be able to claim some benefits while you’re looking for a new job.

For example, you might be able to get:

Housing Benefit to help pay your rent

Jobseeker’s Allowance or Universal Credit

Working Tax Credits (or a higher amount if you get them already)

 

Use our benefits checker to see what benefits you may be entitled to. (Citizens advice)

If you have a mortgage, check your mortgage protection policy to see what it says about redundancy. You might get some money towards your mortgage while you look for a new job.

If you’ve bought something on credit, check whether you've got a payment protection insurance policy that will pay off the credit because you’ve been made redundant.

Making a career change

You can get advice from the National Careers Service if you want to get a new qualification or make a career change, like starting your own business.

You might be able to get help paying for training and qualifications. Read more about:

professional and career development loans? - to pay for courses and training to further your career

student loans - to help you pay for a degree

grants and bursaries? - to help pay for courses and training        

Help getting a new job

Contact your local JobcentrePlus and ask for their Rapid Response Service - they specialise in helping people who have been made redundant. They will help you find a new job and may even pay for training.

You can use the service during your notice period and for up to 13 weeks after you’ve been made redundant.

You should also ask your employer for a written reference, as you can send this with your job applications.

NOTE: You won’t get any redundancy pay you’re entitled to if you accept a new job with your employer before the end of your notice period.                                                                            (citizens advice)

Your local Jobs and Benefits Office can provide advice to any employees being made redundant who are under 18.

Further information.

If you require further information or advice, you can call the Department for the Economy's Redundancy Payments Freephone Helpline on 0800 585 811.

You can also get help from the LRA Helpline on Tel 028 9032 1442.

http://www.lra.org.uk/index/resolving-disputes/pre-claim_conciliation.htm

https://www.nidirect.gov.uk/contacts/contacts-az/citizens-advice-northern-ireland

Employers - nibusinessinfo - The redundancy consultation process

 Employees - nidirect -  Redundancy: your right to consultation

HM Revenue and Customs Taxes Helpline

Telephone: 0300 200 3300

Textphone: 0300 200 3319

 

 

 

Sources:

Labour relations Agency

Citizens advice

Social Security Agency

Dept for the economy

NI Business info.

 

 

 

 

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