Know your rights

With the UK now officially in recession for the first time since the early 1990s, the current economic gloom continues to grab headlines. With reports that the recession may continue for up to two years the possibility of being offered redundancy is a concern for many.

If you are made redundant you may have grounds for complaint including unfair dismissal. Your job may not be genuinely redundant, you may have been unfairly selected or there may have been a lack of adequate consultation. Has the business considered alternatives to compulsory redundancies? Were you offered any alternative positions? You may also have been unlawfully discriminated against, for instance if you have been selected on the grounds of pregnancy, age or disability.

Where 20 or more employees are dismissed as redundant within a 90-day period, special collective consultation rules apply. Employees may be eligible for compensation if the employer does not follow the correct process.

The rules relating to dismissal procedures are complex (with changes in effect from 6 April 2009). Employees concerned as to their rights should take professional advice as soon as possible to consider whether they have any grounds for complaint that should be pursued, and whether the benefit to be gained in pursuing the matter justifies the time and cost involved. Commercial considerations, such as professional reputation may also come into play. It is advisable to check whether you have any insurance to cover your legal costs, (which are not normally recoverable in the Employment Tribunal).

If you face redundancy, and have more than two years' continuous employment with your employer you will be entitled to a statutory redundancy payment, calculated by reference to weekly earnings, age and length of service. For these purposes, a week's pay is subject to an upper limit (currently £350).

Some employers operate contractual redundancy schemes above the statutory minimum, or offer discretionary enhanced terms. Such offers are often subject to the employee signing a "compromise agreement" to sign away his or her rights to bring any claims against the employer in return for a compensation payment.

Compromise Agreements are subject to a legal requirement that the employee must obtain independent legal advice. The employer will normally offer a contribution towards legal fees for taking this advice as part of the severance terms. The Compromise Agreement may also include provisions in relation to confidentiality, non-compete restrictions, non-derogatory comments and references.

In the event that you are offered redundancy Stanley Tee LLP can provide expert guidance on your rights and severance terms offered. We can negotiate on your behalf to ensure that you receive the right deal and provide advice on whether the correct procedures have been followed by your employer and the terms offered are fair.

We can also give advice should your employer impose reduced or changed hours and/or conditions or in the event of your employer going into administration.

For further information and employment related advice, please contact Rob Whitaker, Associate in the Employment department of Stanley Tee LLP on 01279 710647 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Disclaimer: This guidance is intended solely to ensure that you are aware of the need to request detailed advice relevant to your particular personal circumstances and should not be relied on without seeking professional legal advice.