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Browse frequently asked questions and answers on key HR issues. Navigate by topic or key word search. View latest additions or suggest a question to the XpertHR editorial team.
How is redundancy pay calculated under the Employment Rights Act 1996? Will an employer be liable to an age discrimination claim if it makes enhanced redundancy payments? Where an employee on maternity leave who is receiving statutory maternity pay is being made redundant should her redundancy pay be calculated on her normal rate of pay or her maternity pay? If an employee who qualifies for additional paternity pay is dismissed as redundant should he be paid his full additional paternity pay entitlement? Is an employee who is accepted for voluntary redundancy entitled to a statutory redundancy payment? Should regular overtime be taken into account when calculating weekly earnings for redundancy pay purposes? Where an employer wishes to make a full-time position part time due to a reduction in work would this situation come under the definition of redundancy? Do employers have to pay redundancy payments to part-time employees? Where an employee has recently changed from full-time to part-time hours how should his or her redundancy payment be calculated?
Yes, under the Trade Union and Labour Relations (Consolidation) Act 1992, when an employer is proposing to dismiss as redundant 20 or more employees at one establishment within 90 days or less, the employer has a duty to consult with the appropriate representatives of the employees who may be affected by the proposed dismissals, or who may be affected by the measures taken in connection with those dismissals.
The relevant definition of redundancy for the purpose of collective consultation is a "dismissal for a reason not related to the individual concerned". This includes the situation where an employer proposes to dismiss and re-engage employees who do not agree to a proposed variation of their contract.
Even where there is no duty to consult collectively, a redundancy dismissal will normally be unfair under the Employment Rights Act 1996 if there has been no or inadequate consultation with individuals.
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