Redundancy - Know your rights!

Redundancy need'nt be the end of the world.Although in these content pieces we tend to showcase the importance of insurance cover, particularly for damages (such as with income protection insurance), it is worth pointing out that being made redundant isn't quite as straightforward as it might appear.

For instance, your employer is legally obligated to use demonstratably objective criteria to discern who might be at risk and they must consult all effected employees asap about potential redundancies. Everyone is permitted to have a friend  or union agent with them during any redundancy conferences.

You are free to ask to see whatever conditions were used to decide who will be made redundant so if you're unhappy with the methods used or factors given an individual could appeal to an independent tribunal - in fact your bosses are required to inform you about your right to appeal when they approach you with a redundancy notice.

Remember, however much it might feel like it, redundancy is not at all similar to being fired and employers have to both explain why the redundancy is taking place and also look at potential ways to avoid it.

In fact there is an obligation upon your employers to find other positions within the company if your last job became redundant. This doesn't mean they should create a job for you that isn't there, but it does mean you can ask to review all the existing vacancies in your business and try for them if you have the necessary knowledge and qualifications. You can even try a new job within the business for a trial period of time to see if you are appropriate for it (and vice-versa), all without effecting your right to your redundancy payment.

The redundancy payments are protected by law and you are eligible for one should you have several years service at the organisation. The settlement is generally a week's pay for every year you've worked there, unless you are 41 or over in which particular case you are entitled to 5 weeks's pay for every year you've worked there - although in these two cases the pay is capped at £330 per week.

Some employers offer a more substantial redundancy compensation so you should check with your recognised employment paperwork to check what you are genuinely due.

A good redundancy package can often cover most of your costs until you get a new job or until an income protection policy becomes active.

Insurance Glossary

Insurance Jargon BusterInsurance Jargon Buster - A Plain English Guide

Like with most subjects, insurance comes with its own language which can include its own confusing terminology. Our Jargon buster aims to help you clarify what some of the terminology you might find on our website means so that you can fully understand the policies and covers you are considering.

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