What is Redundancy Pay and how is it worked out?
Redundancy pay is all about an employee’s rights to be paid once they are made redundant by their company. An employee is basically made redundant if the company he or she has been working with need to cut up their workforce rendering the employee’s services no longer required and immediate termination is at hand. Because of the global recession that has been ravaging the world’s economy these days some company need to either close down or cut back on their expenses specifically with the amount of working hands within their offices. Other redundancy necessities include technological advancements where machines can be more economical and efficient than having a number of production workers on hand that can be even more of a burden than a help. UK employees are protected from this unfair treatment by the Employment Act of 1996, which gives rights and privileges to workers who have been unjustly cut out of their source of income.
Employees are entitled to redundancy pay when they have been employed in the company for more than two years. An employee once made redundant, can leave work early but with the necessary income still given by the company to compensate for the loss of his or her job. Companies and employers are held by legal matters whenever they have to close down or to reduce their amount of employees. They have to do everything by documentation and they have to explain to the proper authorities that reason for redundancy. These companies are entitled to pay their employees either weekly of every two weeks depending on the age, amount of years they have worked for the company and their weekly compensation. Employees on the other hand should have the right to negotiate their pay so that it can cover all the necessary bills and expenses before they can have a job again.
Many companies prefer the statutory redundancy pay which takes in the factors such as age of the employee, the length he or she has served the company and the weekly payment received not exceeding 330 pounds. Minimum payment for being a redundant are entitled to one and a half week of payment for each year for each person at the age of 41 and above, once a week payment for each years for employees aged 22 to 40, and half a week’s payment per year for people below the age of 22 years. Every employee has the right to stand up for whatever unfair treatment they might have felt in the process of the redundancy. Employees undergoing such serious issues should write a compliant informing the company of his or her misgivings and turn to employee tribunal in order to have it recognized by the union so that proper action and quick settlement should be given. Employees and their companies are entitled by the law to uphold all the proper conduct and processes so as to be able to preserve the much needed respect for each party, the law should be properly recognized and given importance to in order to avoid issues that usually distorts the relationship of workers with their employers and vice versa.