Martin Lewis on Redundancy Rights: What to Check First
When redundancy is in the air, the worst time to learn your rights is after the letter arrives. Martin Lewis has often told people to understand the process early, especially around consultation, notice and redundancy pay.
Redundancy is not just a business decision handed down in a single letter. A fair process matters. That process depends on the number of redundancies, your contract, your length of service and what alternatives the employer considered.
Important correction: collective consultation is not a blanket 45 days. It is at least 30 days for 20 to 99 proposed redundancies and at least 45 days for 100 or more at one establishment.
The Consultation Rules
If an employer proposes 20 or more redundancies at one establishment within 90 days, collective consultation rules apply. That means consultation with trade union representatives, elected employee representatives or staff directly where appropriate.
| Proposed redundancies | Minimum consultation before dismissal |
|---|---|
| Up to 19 | No fixed statutory minimum, but consultation must still be fair. |
| 20 to 99 | At least 30 days before the first dismissal takes effect. |
| 100 or more | At least 45 days before the first dismissal takes effect. |
What Statutory Redundancy Pay Covers
You normally need at least two years of continuous employment to qualify for statutory redundancy pay. The calculation is based on age, length of service and weekly pay, with statutory caps applied.
- Half a week's pay for each full year worked under age 22.
- One week's pay for each full year worked from age 22 to 40.
- One and a half week's pay for each full year worked aged 41 or older.
- Length of service is capped at 20 years and weekly pay is capped by law.
What Else to Check
Redundancy pay is only one part of the picture. You should also check notice pay, payment in lieu of notice, accrued holiday pay, bonuses or commission, pension treatment, benefits and whether your employer offered suitable alternative employment.
If you are offered a settlement agreement, do not treat it as a normal form. Settlement agreements normally need independent legal advice before they are binding.
Fair Selection Matters
An employer should use fair selection criteria and should consider alternatives to dismissal. If selection is discriminatory or the process is a sham, the dismissal may be unfair even if the business genuinely needs to reduce headcount.
The Takeaway
The practical Martin Lewis-style point is timing. Know the process before you need it. If you understand consultation, notice and redundancy pay early, you are less likely to sign away rights or miss payments you are owed.
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