Redundancy Enquiries to CAB increase again

In 2009 Citizens Advice saw a 42% increase to 3,333 enquiries in relation to redundancy compared with the previous year.  In general redundancy enquiries now account for 19% of all employment enquiries to Citizens Advice during 2009.  Recent announcements of redundancies at Hughes Christensen and fears over job losses at Avaya and Arntz Belting have reinforced the need for quality advice and information for employees facing redundancy.

Being made redundant is not the same as being dismissed.  You can only be made redundant if your job disappears or your employer reduces its workforce.  In a redundancy situation there are some general rules your employer must follow:

• your employer should consider if there are other suitable jobs available which you would be capable of doing and offer it to you.  It should be suitable in terms of pay, status, hours, location, etc
• you have the right to try out an offer of suitable alternative employment for a trial period of 4 weeks before you decide to take it
• your employer must normally consult with employees and warn you about possible redundancies
• your employer must be fair and objective when deciding who should be made redundant.  It is illegal to use selection criteria which discriminate against anyone because of their age, gender, race, disability, sexual orientation, religion or belief
• when your employer makes you redundant they must give you notice of redundancy
• your employer may have to pay you redundancy pay if you have worked for them for more than two years.  How much you will get depends on how long you have worked for your employer, your age and your weekly pay.

Citizens Advice has produced some tips for people who have been made redundant:

• if you have a contract, check it for your redundancy entitlements as your contract may give you more than the statutory minimum
• your employer must be fair and objective when deciding who should be made redundant – if you think you have been unfairly selected for redundancy you can make a claim to an Industrial Tribunal within 3 months
• if your employer is insolvent you may be able to claim a statutory redundancy payment from the Department for Employment and Learning (Redundancy Payments Service).  If you are entitled to contractual redundancy pay you cannot claim the extra amount from the Redundancy Payments Service. To recover the difference you will have to make a claim to the receiver/liquidator as a creditor.  There is a strict priority order in which claims to the receiver/liquidator must be paid
• Once you have received your redundancy pay be very careful about what you spend the money on until you have taken advice about how it may affect your benefits and tax credits position.  You may be treated as still having the money even if you have spent it
• If you have been given notice of redundancy you have the right to paid time off work to look for a new job/arrange training if you have worked for your employer for at least two years
• If you haven’t got another job to go to you may be entitled to help in the form of social security benefits.  Depending on your circumstances these could include Jobseeker’s Allowance, Housing Benefit, help with your rates, free school meals for your children and help with NHS costs
• If you are an owner-occupier you may get help to pay off part of your mortgage through the benefits system.  The Support for Mortgage Interest (SMI) scheme provides help with mortgage interest payments for those receiving means-tested benefits.  The waiting period for help with mortgage interest is 13 weeks and the maximum size of mortgage qualifying for help is £200,000
• If you are struggling to pay your bills as a result of redundancy, speak to your lenders straight away and inform them of your situation
• If you have bought goods on credit check if you have got payment protection insurance as it may pay off your credit if you have been made redundant
• Get help – contact your local CAB for free and confidential advice.  Your local CAB can give you a benefits check and provide advice on how to manage any debts you may have.

A free fact sheet on the issue of redundancy is available from the Citizens Advice website at www.citizensadvice.co.uk/publications.