LAWLINCS : Redundancy

Redundancy arises where the work of a particular employee no longer exists. The regional
office might have closed, or, the factory stopped producing a particular product. In these
circumstances, any redundant employee(over the age of 18) who has been working for the employer continuously for two years, is entitled to a redundancy payment.

There used to be an upper age limit of 65 for this right, but this no longer applies to redundancies made after 1st October 2006

At 1st February 2009, these payments are calculated as follows:-

Selina Gill

Half a week’s pay (up to a maximum of £350/week) for every year worked between
the ages of 18 and 22

One week’s pay (up to a maximum of £350/week) for every year worked
between the ages of 22 and 41

One and a half week’s pay (up to a maximum of £350/week) for every year worked over
the age of 41, if you are made redundant after 1st October 2006

NB – the maximum number of years which can be taken into account is currently
20 years continuous employment

And there's more, the employer must have acted reasonably.

He must have used a fair selection process, for instance, he must have consulted the
employee and considered employing the redundant worker elsewhere within the
organisation. If not, go back to Unfair Dismissal, do not pass go, do not collect up to
£66,200.00 compensation.