Disputes between employers and employees often end up in an employment tribunal claim. As an employer it is imperative that you are fully up to speed on Employment Law with regards to redundancy procedures. Beyond establishing the issues surrounding the redundancy and that it is genuine, there are several other factors you must take into consideration in order to avoid a claim for employment tribunal compensation:
• Whether or not an employee has turned down suitable alternative employment is irrelevant
• An employee continuously employed for two years or more is legally entitled to reasonable leave during the notice period to seek new employment or make training arrangements
• The employee is entitled to a maximum of 40 per cent of a week’s pay for time taken off during the whole notice period
• Statutory redundancy payments are based on length of service, age and salary, subject to a statutory cap. If the employee earns less than this statutory cap then you calculate the figure based on gross actual pay
• Ensure you correctly calculate the cost of contractual notice or payment in lieu of notice and redundancy payments as there may be a claim for enhanced redundancy payments
The costs in dismissal claim cases are almost always irrecoverable on both sides. In addition they are often protracted affairs and can be inordinately stressful to both parties due to their very nature; disputes having arisen between employers and employees. It is therefore in the interest of both parties to try and reach a mutually beneficial or amicable resolution to avoid an employment tribunal. Contact our team of experienced employment solicitors today for specialist employment law advice.