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Workers unsure about their redundancy rights

Added: 2010-04-21 16:13:29.0
In a survey of over 4,000 members of the public, consumer rights group Which? has found that over a quarter (27%) of adults are worried about being made redundant and that a similar amount (24%) are concerned that their employers may freeze or reduce their pay.

However, it seems that the majority of those questioned are unaware of their rights in such a situation.

Of those questioned, a massive 98% were unable to answer the Which?’s true or false questions on redundancy correctly:

1. If you are made redundant you always have the right to a redundancy payment from your employer (correct answer = false).
2. The amount of redundancy payment you are entitled to depends on your age (correct answer = true).
3. When choosing who to make redundant, an employer can make the decision based on ‘last in first out’ (correct answer = true).
4. Your employer can change the terms of your employment where they feel necessary, as long as they provide 30 days notice (correct answer = false).
   

To summarise the results:

• 50% mistakenly believed that they would always have the right to a redundancy payment from their employer.  In fact, they would have to have worked for them continuously for at least two years.
• 70% of the respondents were unaware that the amount of redundancy payment they are entitled to depends on their age.
• Almost half had no idea that employers can choose who to make redundant based on a ‘last in, first out’ basis.
• 58% mistakenly believed that their boss could change their employment terms by giving them 30 days notice.
  

The statistics could be considered as being worrying when 6% of UK workers have been made redundant in the past 2 years and 10% have suffered a pay freeze.

Speaking of the findings, Which? Chief Executive Peter Vicary-Smith commented: “Our research shows that most people would have absolutely no idea what their rights were if faced with redundancy or a pay cut. Ignorance is anything but bliss in these situations - it really does pay to know where you stand.”

Do your employees know their rights when it comes to redundancy?  Do you know their rights for that matter?  Do the results come as a surprise for you or do you think that the results fairly represent the views of your staff?  Let us know by commenting below.


The content of this blog is not legal advice and should not be relied on as such, or used instead of seeking legal advice.

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