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The prospect of having to deal with redundancy situations can be daunting for both employers and employees.

The law provides employees with a number of rights in a redundancy situation and, in order to avoid expensive mistakes, it is essential that employers and managers understand those rights.

Employees who are dismissed by reason of redundancy may be entitled to a statutory redundancy payment and may also be able to challenge the termination of their employment as an unfair dismissal. A successful claim for unfair dismissal means that the employer might be liable for costly compensation payments.

Employers need to know:

  • What ‘redundancy’ actually means
  • When they must inform and collectively consult with trade unions or employees’ representatives about redundancy
  • How to deal fairly with individuals being considered for redundancy so as to minimise claims for unfair dismissal
  • The alternatives to redundancy – such as lay off and short-time working
  • How to determine an employee’s entitlement to a statutory or contractual redundancy payment

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