If an employee has been laid off or put on short-time working, he may be entitled to a statutory redundancy payment under a specific statutory scheme if he terminates his contract by giving notice and satisfies the eligibility requirements.
Firstly, the employee must satisfy the eligibility requirements under the general statutory redundancy payment scheme (including the completion of two years’ continuous service).
Secondly, the employee must:
- Work under a contract according to which his pay is dependent on the provision of work by the employer (for example, workers paid per piece of work done)
By the employer (for example, workers paid per piece of work done)
- Have been laid off or put on short-time working for the requisite period
- Have been available for work (i.e. an employee on sick leave will not be eligible)
- Comply with the statutory notification procedure
- In contested cases, apply to the tribunal for a decision, and
- Resign his employment by giving notice
An employee may be entitled to a redundancy payment in these circumstances even if he also receives a statutory guarantee payment from the employer.
The employee must have been laid off or put on short-time working (or a combination of the two) for either:
- Four or more consecutive weeks, or
- A total of six weeks (of which no more than three are consecutive) in any period of 13 weeks.
For these purposes, a week ends with a Saturday, unless the employee’s pay is calculated by reference to a week ending with a different day, in which case it ends with that day.
The employee must give the employer written notice of his intention to claim a redundancy payment on, or within four weeks of, the last day of the lay off or short-time working on which the claim is based. This time limit cannot be extended.
If the employer opposes the claim, he must serve a written counter-notice within seven days of service of the employee’s notice. It must clearly state that the employer intends to contest the employee’s claim for a redundancy payment.
The counter-notice must be served by:
- Delivery to the employee
- Leaving it for the employee at his usual or last-known place of residence, or
- Post to the employee at that address.
The employer can withdraw his counter-notice at any time by giving a written notice of withdrawal.
The redundancy payment is calculated in the same way as in the general scheme. The relevant date for calculation purposes is the last day of the last week of lay-off or short-time working on which the employee is relying.