There are things you can do to get money your employer owes you.  You will need to start by checking whether your employer is actually officially “insolvent” – this means they can’t pay their debts. You can do this for free by checking Companies House.

If the employer is insolvent, you will usually be contacted by an “insolvency practitioner” – administrator – they are the people in charge of your employer’s debts.  They should contact employees soon after the employer is made insolvent.   You may also be able to find their details on Companies House when you search for the name of your employers.  Often employers may trade under different names – looking at the name of your employers on your wage slip will help.

It is a good idea to stay in contact with the people that you have worked with and if you are a member of a trade union you should stay in contact with your representative.  This will mean you will be able to share information about the situation.

If the employer is insolvent, you can apply to the Redundancy Payments Service – this is a government service for the monies lost.  You can claim:

• up to 8 weeks wages
• pay for any untaken but accrued annual leave
• statutory notice pay
• statutory redundancy pay (only if you have been in employment for 2 years or more).

Unpaid wages include statutory payments you should have been paid, for example statutory sick pay or statutory maternity pay.

The maximum amount you can get for a week’s unpaid wages or annual leave if your employment ended after 6 April 2024 is £700 for each week.

Applying to the Redundancy Payments Service

The insolvency practitioner should have provided a case reference number called a CN number.  You will need to use the CN number to claim the money your employer owes you.  You should usually get your money within 6 weeks of applying. 

Applying for money your employer owes you on gov.uk

If you are entitled to statutory notice pay and your employer didn’t pay it, you need to make a second claim for it.  The insolvency practitioner will give you another case reference number called an LN number.  They will only give it to you after your notice period should have ended.

If you are still owed money by your employer that you can’t get from the Redundancy Payments Service, the insolvency practitioner should help you register as a creditor which means you might get some money if there is any left when your employer is fully shut down.

With the current economic situation, it would appear that companies will be becoming insolvent and filing for administration more regularly unfortunately.

If your employers are solvent, write to their registered address setting out the details of the payments they owe you.  There is a time limit for three months less one day from the date you should have been paid to bring a claim in the Employment Tribunal for unpaid monies.

The first step in bringing a claim is registering a claim notification form with ACAS, (Advisory, Conciliation and Arbitration Service).  This is a free service and a compulsory step you need to take before you are then able to register a claim with the Employment Tribunal. 

Registering your claim with ACAS ‘pauses’ the time limit.  ACAS can offer a conciliation service to try and see if they can assist in resolving the dispute, but if that is unsuccessful, they will issue a certificate.  Once that certificate is issued the time limit starts to run again, so you will need to calculate the deadline for when you must issue your claim in the Employment Tribunal.

Our specialist Employment Law team advise employees and employers across all occupations and industries, and we would be pleased to assist. 

Article written by Employent Solicitor Kerry Hudson

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We have seen an increase in the number of employers and employees alike who are approaching us for legal advice.

We’re seeing a lot of redundancies and restructuring plans being brought forward, employers are worried about the impact of Labour’s new proposals, including ‘day one rights’ for employees, so they are looking to make any changes to their business now in light of the uncertainties.

In tandem with the rise in redundancies and company restructures we are also seeing an increase in the number of employers seeking advice on “without prejudice” settlement agreements, or packages offered to employees to facilitate a seamless exit.

Labour’s proposals look to strengthen employee’s rights, such as day one rights for example removing the minimum period of two years in which they can bring a claim for unfair dismissal, which is making employers nervous.

A settlement agreement is a written agreement between an employer and employee, often part of a voluntary redundancy programme. Regulated by statute, an employee agrees to waive their right to bring claims against their current or former employer.

Statute requires that before any agreement is signed, the employee must seek independent legal advice on the terms and effects of the agreement and their ability to pursue claims in case of an employment tribunal.

Settlement agreements look to settle all potential claims, with the exception only of enforcing the agreement itself, accrued pension rights, personal injury claims which the employee is not yet aware of.  Employers most often offer an ‘ex gratia amounts – a sum of money’ so that an employee will be more inclined to enter into and sign.

The employer will usually propose terms of settlement which can sometimes then be negotiated and agreed upon, with employees required to take legal advice often paid for by the employer before the agreement is made binding.

Employees do not have to accept the first offer made and can come back with a reasonable proposal but in these circumstances will have to pay their own solicitor’s fees.

We remind employers they must adhere to a fair process and consultation, offering alternative employment where possible and getting legal advice before embarking on business changes to avoid things go wrong and facing potential legal claims can prove dividends – as always preventive is better than a cure!

If you have been affected by a redundancy or restructure as an employee. Or are an employer looking for advice then please contact our expert team for assistance.

Article written by Employment Law Solicitor, Kerry Hudson.

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Kerry Hudson, Employment Solicitor said there was a growing number of cases where the skillsets of existing employees no longer suited the changing needs of a business.

The sea change started at the beginning of Covid19. With many businesses using the quieter period to take stock and re-evaluate, some employees have either found themselves surplus to requirements or their skills no longer match the direction of the business.

Kerry said: “I have seen a lot more cases of redundancy over the past year, but it is not because of cutting costs, it is because business needs have changed and there need to be internal changes accordingly.

So, some people have seen their roles change while others might not necessarily have the required skill sets any more.

This has been a real problem among senior level executives for example, who are much harder and more costly to retrain than someone at a lower level. Another emerging issue relates to people who were working abroad and had to come back as a result of the pandemic. Companies are asking do they really need to fly their employees abroad or can someone else take on the same role.”

Kerry warns that even if a member of staff no longer fits the bill, employers should follow the correct route to dismissal in order to protect themselves.

This includes:

• Evaluating the diminished need
• Exploring alternative employment opportunities within the business
• Exploring training opportunities which could lead to employment elsewhere within the business
• Exploring the possibility of reduced hours or reduced pay to save jobs.

Kerry states that, redundancies against groups of people – such as the oldest or the youngest – can lead to discrimination.

One safe, effective method is a scoring matrix if there is a ‘redundancy pool’ which outlines a fair selection criteria in which employees’ skill sets, disciplinary record and sickness record comes under the spotlight. With all factors taken into consideration the matrix makes the choice for the employer.

However employees who have served less than two years with a company are not offered protection against redundancy.

For any Employment Law related questions, please contact our expert team at BTTJ

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A redundancy occurs where there is:

• a closure of a particular site or office or
• a closure of the whole business or
• a reduced need for workers to do a particular kind of work.

Watch the video below to find out more about redundancy and the issues that arise.

Some key things to consider are:

• If you have at least two years’ continuous employment, you will be entitled to a statutory redundancy payment.
• You will also have unfair dismissal rights – to successfully defend such a claim, your employer will need to show that there is a genuine redundancy situation and it has followed a correct consultation procedure before dismissing you for redundancy.
• If you are being made redundant and have less than two years’ service, you will not be eligible for a statutory redundancy payment.  You will also not be eligible to bring a claim for unfair dismissal on the grounds of redundancy (although there are some limited exceptions which we can explain to you).
• Selection for redundancy should not be motivated by a discriminatory reason such as sex, race, disability, age, sexual orientation, religion or belief, gender reassignment, marriage or civil partnership, pregnancy or maternity.  If it is motivated by such a reason, you can bring a claim for discrimination without any period of continuous employment.
• Where there are 20 or more employees being made redundant at one establishment over a period of 90 days or less, there are duties about information and consultation, including minimum consultation periods.  There may be a claim for a Protective Award in the Employment Tribunal if your employer fails to carry out these duties.
• Some employers will offer Settlement Agreements before or during a redundancy process.  You can find out more about Settlement Agreements by visiting our Settlement Agreement page.

If you would like to discuss a redundancy situation or you have been offered a Settlement Agreement, please contact our employment lawyer Kerry Hudson.

Kerry is an Employment Solicitor in Coventry and provides advice to employers and employees across the whole of the Coventry and Warwickshire area including Rugby, Nuneaton, Atherstone, Warwick, Leamington Spa and Kenilworth.

Please call 024 7653 1532 or email Kerry.Hudson@bttj.com

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Whilst we cannot comment on the specifics of the RICS case, as a matter of general law, if you are an employee with two years’ continuous employment who does not wish to relocate, you may be entitled to a statutory redundancy payment.

Arguments about your entitlement to a statutory redundancy payment may arise if your employer claims that you are not redundant. An employer may argue that there is a mobility clause in your contract of employment which states, for example, that you are contractually required to work at other premises and you are therefore, not redundant.

An employer could also argue that it has made you an offer of suitable alternative employment at the new premises and you have unreasonably refused the offer (or unreasonably resigned or given notice during any trial period in the alternative employment).

We can advise you upon the validity of any mobility clause and your legal position regarding any offer of alternative employment.

If you would like to discuss your situation, please contact our Employment Solicitor, Kerry Hudson on 024 7653 1532 or email at Kerry.Hudson@bttj.com.

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If you are being made redundant, you are entitled to notice of termination of employment but what other rights do you have?

If you have two years’ continuous employment

If you have two years’ continuous service or more with your employer, you will be entitled to a statutory redundancy payment and also have unfair dismissal rights. In this instance, your employer needs to show that there is a genuine redundancy situation (ie it is not a ruse to “move you on”) and it has followed a correct consultation/dismissal procedure. If this is not the case, you are likely to have an unfair dismissal claim.

If the redundancy situation is caused by a reduced need for employees to do work of a particular kind, there can often be issues of fairness about who gets to keep their job and who is made redundant.

A redundancy dismissal is likely to be an unfair dismissal unless the employer has:

• identified an appropriate pool of employees from which redundancies will be made
• consulted with individuals in the pool, including on matters such as selection criteria for redundancies
• applied objective selection criteria to those in the pool
• consulted with the employees selected on an individual basis before a decision is made to terminate employment on the grounds of redundancy. The consultation will include considering alternative employment (subject to a trial period). This will usually involve a few meetings with the selected employees.

If you have less than two years continuous employment

If you are being made redundant and have less than two years’ service, you will not usually be eligible to bring a claim for unfair dismissal on the grounds of redundancy or be entitled to a redundancy payment.

However, in certain instances, you don’t need two years’ continuous employment to be eligible to bring a claim for unfair dismissal. This would be the case if you are made redundant due to one of the automatically unfair reasons e.g. you had asserted a statutory right, such as the right to a statutory rest period.

Collective consultation

Where there are 20 or more employees being made redundant at one establishment over a period of 90 days or less, there are specific duties about information and consultation, including minimum consultation periods. If an employer fails to carry out the required information and consultation, an award of compensation, known as a Protective Award can be made to you by an Employment Tribunal.

Discrimination

In some instances, the selection for redundancy is motivated by a discriminatory reason (e.g. sex, race, disability, age, sexual orientation, religion or belief, gender reassignment, marriage or civil partnership, pregnancy or maternity). You can bring a claim for discrimination without any period of continuous employment.

Settlement Agreements

Some employers will offer Settlement Agreements before or during a redundancy process. A Settlement Agreement is an agreement between an employer and an employee in which the employee agrees not to pursue any employment claims in return for a financial package.

If you are offered a Settlement Agreement in a redundancy situation, your employer will usually pay you the monies which you would have received anyway eg redundancy payment and notice. In addition, your employer may also pay “a sweetener” in order for you to give up your claims. The “sweetener” may be additional monies or even the offer that notice is not worked and is paid without deduction of tax and N.I.

In addition to written terms about the settlement of claims and monies payable, the Settlement Agreement may also include other terms eg about the confidentiality of the Agreement.

Quite often, a reference would be included within the terms of the Settlement Agreement which your employer would agree to provide if a reference request is made by a future employer.

You would be required to take independent legal advice about the terms of the Settlement Agreement and it is usual for your employer to pay a contribution towards those legal costs.

If you are offered a Settlement Agreement, we will check whether you are being offered a good deal, taking into account your contractual entitlements and your potential claims. We can help you achieve an improved financial package in certain circumstances.

Once a valid Settlement Agreement has been signed, you will not be able to sue your employer for any claims referred to as settled in the Settlement Agreement.

If you would like to discuss a redundancy situation or you have been offered a Settlement Agreement, please contact our Employment Solicitor, Kerry Hudson on 024 7653 1532 or email Kerry.Hudson@bttj.com.

The above is not intended to provide advice

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Step 2: Consider pool(s) and selection criteria and list out any alternatives to Redundancy

Step 3: If appropriate, notify the Secretary of State and begin collective consultation

Step 4: First meeting: Pool of Employees

Step 5: First letter – “At Risk”

Step 6: If appropriate, collective consultation

Step 7: Apply the selection criteria – redundancy scoring

Step 8: Second letter to those provisionally selected

Step 9: First individual meeting

Step 10: Consider and follow up any employee representations made during the meeting.

Step 11: Second individual meeting with “provisionally” selected employee.

Step 12: Send employee letter confirming their selection for dismissal by reason of redundancy, and offer an appeal.

Step 13: If relevant, acknowledge receipt of any appeal Letter and set up a hearing

Step 14: Hear the appeal .

Step 15: Write to the employee and confirm the outcome of the appeal.

This redundancy checklist is intended to provide a general overview of, and memory aid for those conducting, a redundancy procedure. It is not intended to be a substitute for specific legal advice. You should therefore ensure that you seek legal advice about your organisation’s specific circumstances and requirements.

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