Brad Allmark (Student)
The number of employers that notified the government in June 2020 about plans to cut 20 or more jobs was five times higher than in June 2019. According to the BBC a freedom of information request showed that in June 1,778 employers said they were intending to cut more than 139,000 jobs in England, Wales and Scotland. In June 2019, only 345 firms had plans to cut 24,000 jobs.
Covid 19 was the cause of the cuts due to the reduction in the UK economic output. Employers that are planning to make 20 or more staff redundant have to notify the government using a form called an HR1 Advance Notice of Redundancy. The Government saw an increase in these forms over the financial crisis rising from 500 in March 2020 to 1800 by June 2020. This does not include businesses that plan on removing less than 20 staff as they do not have to notify the Government.
Redundancy is a form of dismissal from your job. It can occur when employers need to reduce the number of employees. If you are being made redundant then you may be eligible for certain things, these include redundancy pay; notice period; a consultation with your employer; the option to move into a different job andtime off to find a new job. If your employer is insolvent, then you have specific rights to deal with this. If you have been made redundant due to COVID 19 then your employer may be able to re-employ you and pay 80% of your wages using the Job Retention Scheme.
The redundancy process does not happen overnight. It includes a consultation period of a minimum 30 days for 20 staff and over, and 45 days for 100 staff or more. If you are selected for redundancy it must be done fairly. This means that you cannot be selected because of age, gender, or if you are disabled or pregnant. If you are then you could claim unfair dismissal. You can be made redundant while on furlough, but the same rules of fairness apply. You cannot be made redundant, or put on notice, while your employer is claiming money from the Job Support Scheme to help fund your role. Some people will have redundancy rights in their contract which may be more generous than the legal minimum.
The economy made a small recovery after the unprecedented economic downturn that happened over the previous months, as workers were asked to go back to work and customers were encouraged to spend more money with schemes like the Eat Out To Help Out restaurant vouchers. However, a number of employers from many of the hardest-hit sectors, such as retail and restaurants, announced big redundancy plans, including Debenhams, DW Sports, Marks & Spencer, Pret a Manger, currency exchange company Travelex, and WH Smith.
At Staffordshire University Legal Advice Clinic (SULAC) we offer free legal advice on employment related matters. If you wish to book an appointment with us call 01782 294 800 or alternatively email SULAC@staffs.ac.uk