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If You Have Become Redundant
When many of us take the course of employment, we think that we would spend the rest of our lives
working at the job, only to retire from it at the age when we can no longer work. Sometimes this happens but at
other times, it may not happen at all. We know that businesses usually climb the levels of prosperity in times when
there is economic boom, but the same businesses may exhibit a fall in times when there is economic recession. This
is the time when the worst can take place.
In times of economic recession, every business experiences a fall in the revenues that are being earned.
This leads to a reduction in the level of earnings and may mean losses for certain businesses. In order to reduce
the losses, the businesses have to therefore reduce their expenditure and one way of reducing expenditure is to
take a downsizing exercise and cut upon the number of staff, which eventually means that certain staff members will
have to be made redundant.
Redundancy is a nightmare from the point of view of the employee and it is the worst that can
happen to him during the course of his or her employment. It is the name given to the dismissal where the employee
has done nothing wrong, but is being dismissed on the grounds that either the employer is discontinuing operations,
no longer needs the services of such employees or is on a downsizing exercise to cut costs in order to stay
competitive.
However, the employment laws of the land give certain rights to the employees who
have been made redundant. If we take the example of the United Kingdom, the Employment Rights Act, the
employer must make a redundancy payment to every employee that it so makes redundant. Every employee who has
worked for the employer for a period of two continuous years is entitled to such a payment. It does not matter
that you worked for two hours a day or twelve hours a day, you are still entitled to receive redundancy
payment. You are entitled to receive a lump sum amount, which depends upon the number of years you were in
employment, the weekly pay that you used to receive and the age limit under which you currently fall. It is to
be noted however that self-employed people and partners in a partnership do not fall for a redundancy
payment.
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Redundancy can bring two main types of problems
with it. The emotional problems and any disputes with the employer over redundancy
payments. In both cases, the person so made redundant has to take Redundancy Advice. In
the first case, the Redundancy Advice is most likely to be offered to the person by a
qualified psychologist, who will try to manage the emotional and stress levels of the
person. If the person is in a dispute with the employer for redundancy payment, then
the Redundancy Advice is most likely to come from an employment lawyer, who will
contest the employee’s case in a court of law and prove to it that the employee was
indeed made redundant unfairly and is liable to be paid proper compensation.
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What is Statutory Redundancy?
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