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 Careers Service if you want to get a new qualification or make a career change, like starting your own business.
Contact them at https://www.nidirect.gov.uk/campaigns/careers
Help getting a new job
Contact your local Jobs & Benefits Office to discuss the options with a Work Coach.
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)
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.
