For you and your Family

Redundancy

Redundancy

What is redundancy?

Redundancies are a form of dismissal which can take place when the requirement for an employee’s job no longer exists, or there is a workplace or office closure.  They can be compulsory or voluntary. Being made redundant can be daunting.

The law dictates that employers should follow a process when dealing with redundancies. If your employer fails to follow a fair process, your dismissal may be unfair.

We can explain the process that your employer should follow, advise you on steps that you can take throughout the process, calculate any statutory or enhanced redundancy entitlements and deal with any agreement which your employer requires you to sign setting out the terms agreed.

We can also advise you on the interplay between your redundancy and any restrictions in your Contract of Employment on your activities post-termination.

Are redundancy payments tax free?

Genuine redundancy payments may be paid tax free but this does not apply to all payments. It is important to ensure that if your employer is requiring you to sign a Settlement Agreement, the payments are structured correctly otherwise you may be liable for tax or national insurance contributions on some or all of the payments.

If you would like a confidential chat to see how we can help, please contact us.

 

Settlement Agreements for furloughed / redundant employees

Emily Yeardley
  • Posted
  • Author

With all the uncertainty caused by COVID-19 and increasing unemployment rates, being told that your employment is ending will undoubtedly be a distressing and worrying time. Some employers are offering Settlement Agreements (a legally binding agreeing...

Statutory redundancy payments for furloughed employees

Emily Yeardley
  • Posted
  • Author

Statutory redundancy payments (what the law says an employee is entitled to be paid if they have been continuously employed for 2 years and are made redundant) are calculated based on an employee’s length of service, their age and a...