Redundancy Law in Scotland

Under redundancy law, Scotland is a country where employers are duty bound to treat their employees fairly. This is also the case in England, Wales and Northern Ireland. Redundancy is a form of job dismissal, though it should not happen because an employee has done something wrong.

Reasons for Redundancy:

Redundancy can happen because a company is no longer able to operate, for example, or because a job is no longer required. If a company faces hard economic times they may lay off some staff members to ease the situation. Through redundancy law, Scotland based employers must treat their workers fairly where the reason for dismissal is through redundancy.

An employer cannot dismiss a worker under redundancy law in Scotland because they want a younger worker, for example, or because they prefer to have a worker of a different race. Redundancy law, Scotland wide, demands that employers only select workers for redundancy for reasons that are fair and acceptable.

Acceptable Procedure:

There are certain procedures in redundancy that are acceptable, and employers are expected to follow them. Sometimes an employer will agree methods for deciding on redundancies with a trade union.

Common procedures for deciding on redundancies include last in, first out, where the longest serving working have the most secure jobs. Redundancies may be decided on disciplinary records where those with the poorest employment record are chosen first for redundancy. An employer may also ask for volunteers.

Unfair Redundancy:

If a worker is chosen for redundancy and it can be shown that the employer’s reasons are unfair, then the worker may have the right to appeal to an Employment Tribunal, or an Industrial Tribunal.

Unfair redundancy notice may result because an employer has something personal against a particular worker. The worker may have highlighted some wrongdoing by the employer, causing the employer difficulties, or they may be the wrong age, *** or skin colour in the employer’s opinion.

Where a worker is chosen for redundancy they are entitled to consultation, either as a group if there are other workers involved, or individually. The consultation should address why the worker, or workers, have been selected, and should also look at other alternatives to redundancy if appropriate. If consultation does not take place before redundancy, the redundancy may be deemed unfair.

Redundancy Pay:

Redundancy pay is an employee’s right if they have worked for an employer for a minimum of two years without a break in employment, under redundancy law. Scotland, and the other countries of the UK, is subject to this law. It also applies to cases where a fixed contract lasts for at least two years and fails to be renewed due to redundancy measures.

A worker who receives statutory redundancy pay should not be taxed on it. The amount of redundancy pay will depend on many factors, including: the length of time employed; the weekly wage a worker has been receiving; and the worker’s age. There may also be other factors that have to be considered.

By: Caron J Rose

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