CWU: your rights if you face redundancy
If you are facing redundancy you have rights to cover most circumstances, even if your company is bankrupt – but you will need expert help.
Whilst the lockdown of 2020 saw a huge spike in redundancies figures have yet to be published on the level of redundancies following the ending of furlough in September this year.
Whatever the final number turns out to be it is nevertheless likely that more people will be facing redundancy due to employers going out of business or downsizing.
Mark Elwen of the CWU said: “In 2020 we saw a large increase in redundancy enquiries from members in the West Yorkshire Branch. 2021 has not been quite as bad, so far, but they have started coming in again following the end of furlough.
“The worst situations are where employers have gone out of business, sometimes receivers or administrators are brought in and this does mean the company is wound up in the correct way. In the worst cases, some employers simply cease trading – and don’t even let the staff know what is happening.”
But, Mark advises workers not to despair if their employer is in financial difficulties, has, or is about, to cease trading.
“It is true employees may struggle to get a redundancy payment or outstanding pay from the assets of the company as there are usually many creditors wanting a share of this pot. However, there is special protection for employees, in certain circumstances, to be able to claim redundancy pay and some other payments from the government.”
He added: “Employment law in this area is quite complex so it is important to seek expert advice. If you are a member of a trade union this would be the best place to start. Citizens Advice and ACAS are also useful places to go. But, do not delay, act straight away so you are prepared for what may happen and know your rights even if you believe the correct processes are being followed by your employer.”
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