On the 6th of November, the BBC headlined that more than 120 New Look stores worldwide will close as it tries to revive its fortunes, making more than a thousand of its employees redundant.
Although the fashion retailer said in March that it would shut 60 stores through a restructuring deal with its creditors in an aim to cut costs and improve profitability, this has risen to 120 closing stores as it tries to revive its fortunes.
Redundancy is when an employer dismisses its employees because they no longer need anyone to do a job or if there is a reduction in workforce. The amount of work needed to be done may remain the same (or may even increase) but if it can be done with less people, then there is a redundancy situation.
There are common reasons for redundancy and they usually aren’t a reflection on your ability to do the job. These often include:
- New technology has made your job unnecessary
- The job you were hired for no longer exists
- Your employer needs to cut costs by reducing staff numbers
- The business is closing down or moving
Your employer may offer you ‘suitable alternative employment’ within the company instead of dismissing you. Whether a role is suitable depends on many factors such as the terms of the job being offered, the skills involved and the pay. You would be able to try the role out for 4 weeks to decide if the position is suitable. You have the right to accept or refuse the offer but if you refuse the position, you may lose your right to your redundancy payment.
Understand Redundancy law with Taylor Bracewell
If your employer is making more than 20 employees redundant then they must give you information about the redundancies in writing.
If you are entitled to redundancy pay, you should receive the payment shortly after being made redundant. You are usually entitled to a redundancy payment if you have a contract of employment and have been working for two continuous years or more. The amount you may be entitled to depends on your length of service with the employer, your age and your contract of employment.
It is important to remember that if your employer has failed to pay you the correct redundancy payment, there are very short and strict time limits to pursue your employer at an Employment Tribunal so you must act quickly.
For information on what should be included in writing, or for any other advice on redundancy, unfair dismissal in the workplace or which steps to take after redundancy, please don’t hesitate to contact Richard Lozano, Taylor Bracewell’s Employment Lawyer on 01302 341414. Or alternatively, email email@example.com.