uk employment contract - Keeping Clear of Redundancy Conflicts33 - 0 views

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  #1 Elton Ford on 02 Mar 12

   

  To meet with statutory guidelines and avoid potential disputes over the dismissal, it is deemed redundancy if the following criteria are met: the employer has ceased to operate as a business, or can no longer carry on the business for which the employee was recruited, the employer can no longer continue the business in the location which the employee was working, the employer no longer has the same requirements for which the employee was employed, or the employer has less requirements for type of work for which the employee was employed. Succinctly, it entails business closure, change of location, or reduction in demand for type of work requiring therefore less employees. Employment contracts will ideally cover off the grounds of who and who cannot gain redundancy payments. The qualifications for redundancy payments are: continuous employment for at least two years prior to redundancy. Ideally, an employment contract or staff handbook, can also cover off the exemptions from receiving redundancy payments: people dismissed for misconduct, any worker who has renounced redundancy rights, and employees who refuse a legitimate offer of alternative, suitable employment, with the key word here being suitable, namely, it must meet with being similar to type of job done, and have concurrence with similar pay, location and opportunities.
  
  Redundancy Pay-outs
  Again, there are statutory conditions governing redundancy pay-outs but for the benefits of clarity, it helps for them to be detailed in employment contracts or/and staff handbooks. Statutory pay-outs are calculated with reference to number of years worked by an employee and their age. An employee over 41 receives a week and half's pay for every year worked over that age. Between 22 and 41, the amount is one week's pay for every full year worked, while under 22, qualifies for half a week's pay. An employee can only receive redundancy payment by law for a maximum of 20 years, and there's also a maximum figure on how much is available as a week's pay. Many companies, however, offer more generous redundancy terms than the statutory pay-outs, and it is important for companies to ensure their redundancy policy is fully elaborated in their employment contracts and staff handbooks. Both statutory and private company pay-outs have a threshold of £30,000 free from income tax. Any employee is legally entitled to receive a written statement explaining exactly how their redundancy payment has been calculated. In instance where the employee feels they were entitled to redundancy payment but didn't receive one, or feel they were entitled to more than they received, a claim should be made to their former employer within six months, or to an employment tribunal.
  Redundancy can be hugely upsetting and disruptive to employees. It is common to feel their grounds for dismissal may be unwarranted, therefore, it is sensible for employers to have their redundancy policy and procedures clearly elaborated in employment contracts or staff handbooks, and to make the process of redundancy as transparent as possible. This becomes especially important in instances where there is a reduction of staff due to business demands. The process of selection once voluntary redundancies have been accounted for, must be seen to be transparent and impartial, so each employee understands fully the reasons for their selection, and that it relates entirely to business decisions rather than personal decisions.
  
  
  Employment Contract

   

  <div class="cArrow"> </div><div class="cContentInner">To meet with statutory guidelines and avoid potential disputes over the dismissal, it is deemed redundancy if the following criteria are met: the employer has ceased to operate as a business, or can no longer carry on the business for which the employee was recruited, the employer can no longer continue the business in the location which the employee was working, the employer no longer has the same requirements for which the employee was employed, or the employer has less requirements for type of work for which the employee was employed. Succinctly, it entails business closure, change of location, or reduction in demand for type of work requiring therefore less employees. Employment contracts will ideally cover off the grounds of who and who cannot gain redundancy payments. The qualifications for redundancy payments are: continuous employment for at least two years prior to redundancy. Ideally, an employment contract or staff handbook, can also cover off the exemptions from receiving redundancy payments: people dismissed for misconduct, any worker who has renounced redundancy rights, and employees who refuse a legitimate offer of alternative, suitable employment, with the key word here being suitable, namely, it must meet with being similar to type of job done, and have concurrence with similar pay, location and opportunities. <br /><br />Redundancy Pay-outs<br />Again, there are statutory conditions governing redundancy pay-outs but for the benefits of clarity, it helps for them to be detailed in employment contracts or/and staff handbooks. Statutory pay-outs are calculated with reference to number of years worked by an employee and their age. An employee over 41 receives a week and half's pay for every year worked over that age. Between 22 and 41, the amount is one week's pay for every full year worked, while under 22, qualifies for half a week's pay. An employee can only receive redundancy payment by law for a maximum of 20 years, and there's also a maximum figure on how much is available as a week's pay. Many companies, however, offer more generous redundancy terms than the statutory pay-outs, and it is important for companies to ensure their redundancy policy is fully elaborated in their employment contracts and staff handbooks. Both statutory and private company pay-outs have a threshold of £30,000 free from income tax. Any employee is legally entitled to receive a written statement explaining exactly how their redundancy payment has been calculated. In instance where the employee feels they were entitled to redundancy payment but didn't receive one, or feel they were entitled to more than they received, a claim should be made to their former employer within six months, or to an employment tribunal. <br />Redundancy can be hugely upsetting and disruptive to employees. It is common to feel their grounds for dismissal may be unwarranted, therefore, it is sensible for employers to have their redundancy policy and procedures clearly elaborated in employment contracts or staff handbooks, and to make the process of redundancy as transparent as possible. This becomes especially important in instances where there is a reduction of staff due to business demands. The process of selection once voluntary redundancies have been accounted for, must be seen to be transparent and impartial, so each employee understands fully the reasons for their selection, and that it relates entirely to business decisions rather than personal decisions. <br /><br /><br /><a href="http://www.davecandoit.net/business-finance/other-business/importance-of-signing-an-employment-contract" rel="nofollow">Employment Contract</a></div>

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