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Redundancies and Reorganisations

The law relating to redundancies and reorganisations is complex.

Redundancies and Reorganisations in Chesterfield, Sheffield, Dronfield and Mansfield

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There are legal definitions of what amounts to a redundancy situation and the requirement to ensure that a fair procedure has been adopted when redundancies are made.

As well as individual consultation, there are also more onerous requirements for collective consultation where it is envisaged that more than 20 employees will be made redundant within a period of 90 days. There are civil and criminal penalties on employers who do not comply with obligations to consult collectively, in addition to claims by individual employees or their representatives.

Banner Jones’ Employment Law specialists have many year’s experience advising and supporting employers through redundancy procedures, from businesses with only 1 employee through to businesses with over 1000.

Get in touch with the team

It just goes for me to say thank you for your help and assistance and especially the advice in this matter and should A2Z have the need for similar services. We will certainly consider Banner Jones first

A2Z computers, London

Meet the Team

Katie Ash

  • Director
  • Solicitor
  • Head of Employment Law
Redundancies and Reorganisations Team Members

Talk to Banner Jones. We are ready to help you.

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Frequently Asked Redundancies and Reorganisations Questions

Are we required to go through the redundancy procedure if we can offer employees a job at one of our sites 30 miles away?

Yes as some employees may be happy to take the offer however for others it may mean them moving house. It is unlikely an employment tribunal would consider this as a suitable alternative employment, however this will be dependent on the individual circumstances. 

In cases of collective redundancy, what information are we required to provide for employee representatives?

During the consultation process you have to disclose the following in writing to the appropriate representative.

  • Reasoning for your proposal
  • The number and description of employees you propose to make redundant
  • The total number of employees that are currently employed with that description
  • The method which you are going to use to make people redundant
  • The method in which you propose on carrying out the dismissal including the period in which the dismissals are going to take place
  • The proposed method of calculating the amount of redundancy payments 
We have an agreement with our union that people with more than 20 years’ service will receive improved redundancy terms. Is this viable

Most likely. The second exemption to the requirement that people should not be treated differently due to their age relates to length of service requirements that mirror a similar requirement in a statutory benefit, as for example contractual redundancy schemes where service related provision is more generous than under the statutory Scheme. We advise you to seek legal advice if you are in doubt. 

We plan to use length of service as criterion when selecting employees for redundancies. Is this classed as age discrimination?

It is likely that older employees are likely to have been with you for longer therefore using length of service as a criterion could potentially be classed as age discrimination. Men may have longer service than women so it could potentially be sex discrimination also.

The high court has said in a previous case that using length of service as a criterion for selecting employees for redundancy can in some circumstances be justified.

In that case, the employer argued that taking long service into account was a benefit. The age discrimination rules contain an exception that allows an employer to use length of service as a criterion in relation to the award of a benefit that is potentially discriminatory where it fulfils business needs. Do seek legal advice as each case is unique and has different circumstances. 

What is the amount we are required to pay in redundancy pay?

The amount of statutory redundancy payment depends on factors like age, length of service and pay. This is calculated using the following points:

  • For each full year of service in which the employer was aged 41 or over assign one and a half weeks pay
  • For each year the employee was aged between 22 and 40 offer one week’s pay
  • For each year in which the employee was aged up to 21 offer half a week’s pay

An employee must have at least 2 years employment at the relevant date in order to be able to receive redundancy payments. 20 years is the maximum length of service which can be taken into account.

Age related limits on redundancy entitlements, including redundancy pay remain notwithstanding the legislation which bans age discrimination. However younger works are now able to claim for services before the age of 18 and older workers are able to claim for services beyond 65.

 The week’s pay is subject to a maximum amount of £450 per week.

If you are looking to encourage voluntary redundancies you may wish to offer more than the statutory redundancy. You should ensure however that you do not create a contractual right to such enhanced payments. 

Redundancies and Reorganisations Resources

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Discover how the Autumn Budget 2025 impacts businesses and individuals, and why legal advice is essential for compliance and planning.

The Redundancy Process – a guide for small businesses

The Redundancy Process – a guide for small businesses

As financial pressures mount for small businesses across the UK, it has become increasingly important to proactively assess and refine redundancy processes.

Why the consultation period matters when making redundancies

Why the consultation period matters when making redundancies

Most business owners and decision makers will grapple with the prospects of having to let people go, and the subsequent redundancy process, at some point during their career.

While the decision itself might be tough, it’s absolutely vital that the process is handled correctly, or employers could find themselves facing legal action.

Selling a Business - A Complete Guide

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There are many factors to consider when selling a business and it isn’t something that should be entered into lightly. Our free guide runs through some of the important considerations this involves.

Commercial Property - A Complete Guide

Commercial Property - A Complete Guide

This guide will help you understand what to look for in finding and buying the ideal commercial premises for your needs.

Business Legal Services Team

Business Legal Services Team

Our Business Legal Services team pride themselves on being able to offer high quality ‘city style’ advice in a user friendly, cost effective manner to local, national and international businesses.

Business First Magazine Spring 23

Business First Magazine Spring 23

In this issue we cover lots of topical business issues and challenges from Mergers, Layoffs, Going Global, Commercial Property and more

 Managing Redundancy in your Business

Managing Redundancy in your Business

Katie Ash, head of Employment Law, answers the most commonly asked questions about redundancy.

Gender Pay Gap Reporting: Your Questions Answered

Gender Pay Gap Reporting: Your Questions Answered

Over time, the gap between women’s and men’s median hourly earnings has been narrowing. In fact, according to the Office for National Statistics (ONS) it has fallen by over a quarter among full-time employees in the last decade.

 

Redundancy in the hospitality sector: what do employers need to consider?

Redundancy in the hospitality sector: what do employers need to consider?

With the country now in its third lockdown, it is clear that the hospitality sector has been hit the hardest and with no sign of hotels, pubs and restaurants reopening soon, employers in this sector will be almost certainly be facing some tough decisions about their staff in the coming weeks and months.

Post-Lockdown Planning- What does the future hold for your business?

Post-Lockdown Planning- What does the future hold for your business?

Over recent weeks there has been a huge amount of emphasis on dealing with the lockdown. Businesses and business owners have worked tirelessly to get their heads around the terms of furlough under the Coronavirus Job Retention Scheme, ensuring staff who need to work can do so remotely, and that the office, factory or other workspace remains safe for those who do need to physically attend the workplace.

Gender Pay Gap Reporting- Is Your Business Ready?

Gender Pay Gap Reporting- Is Your Business Ready?

In April 2017 employers with over 250 staff became obliged to report on gender pay gaps. Here are some tips that your business may wish to consider.

Online Privacy in the Office

Online Privacy in the Office

Companies are within their rights to monitor the private online activities of their employees when they are in the office.

It just goes for me to say thank you for your help and assistance and especially the advice in this matter and should A2Z have the need for similar services. We will certainly consider Banner Jones first

A2Z computers, London

Although you are now part of Banner Jones, to me you are still Glossops, and the service we receive is part of why we have been with you for so many years.

Mr T Pass

“Katie Ash recently reviewed an employment agreement for me and provided extremely sound and practical HR advice. She took the time to understand my background and business requirements, which proved invaluable for me to reach the right professional solution. She displayed wide industry knowledge in HR employment matters and I would, without hesitation, recommend BannerJones and their legal and consultancy services provided by her.”

David Hart InXpress Sheffield

Excellent service due to business relationship with our solicitor.

Mr A, Chesterfield

I was so impressed with Katie’s advice. She was very professional, to the point and helped me in what was a very difficult situation. Her advice gave me the confidence I needed and was a real boost.

Mr D, Chesterfield

Service was incredible. Lee Foster made the transition smooth and easy. Thanks Lee!

Mr P, Rotherham

We take data privacy very seriously, and we want you to understand and feel confident about how we collect, store and handle your personal data. If you’d like to find out more you can read our Privacy Policy.