It is a sad truth that business landscapes and practices constantly change over time. Skills and positions that are highly prized today may no longer be useful and in demand in the future. In truth, nobody’s job could be considered forever safe. There may come a time when you would be subjected into a redundancy. This early, you should know more about the possible redundancy entitlements you must receive from your employer in the event your job is made redundant.
If the employer goes broke and the company has to shut down, all employees would be made redundant. Departments or divisions in a company that fail to deliver target results due to weak demand may also opt to cease operations. Staff who do not qualify or prefer to work in other branches of the organization would be made redundant. Your position and skill may no longer hold relevance and usefulness to your employer because the tasks you do are now automated. The employer’s inability to meet payroll obligations could also lead to redundancy. In any way, you have to be open to look at possible redundancy entitlements.
In general, employees who have continuously been working for an employer for at least two years are qualified for appropriate redundancy entitlements. The payment could depend on your age and length of service to the business. Monetary compensation is the top among all redundancy entitlements provided to redundant employees. A redundancy payout to employees is a legal requirement imposed to employers.
Employees who have been employed by an employer for less than two years are not qualified for redundancy entitlements. This provision is mandated by law. However, some employers may be generous enough to give such employees a good severance pay after the redundancy, but take note they are not legally required to do so.
In cases wherein employees are provided redundancy entitlements, the employer should make sure there is a printed or written statement detailing how the redundancy payouts have been computed. If you think and feel that you have gotten less than a fair share of an appropriate redundancy payment, you have the right to file a complaint or a case against your employer before the Employment Tribunal.
While you are employed, you may invest in a private insurance policy. In case you are abruptly made redundant, you have a mortgage to repay, and you have not been qualified to any of the available redundancy pay because you failed to meet required and minimum legal period for redundancy entitlements, an insurance payout could at least help you take care of your mortgage.
Your employer may also offer you a compromise agreement. You may not be qualified to secure redundancy entitlements if you sign the agreement but for sure, the employer would provide you an attractive lump sum in return. Entering into a compromise agreement may be much better than getting redundancy entitlements for many reasons. Hire an employment law specialist to learn more and get proper guidance before entering any compromise deal with your employer.