If a business needs to cut back, consider offering staff alternative working arrangements such as:
It is unlawful to make people redundant based on their age.
Redundancy is an unfortunate fact of life and businesses have to make hard decisions when they need to let people go. It makes sense to try and keep the staff who have skills and experience that may be hard to replace.
The law on statutory redundancy payments was changed by the Employment Equality (Age) Regulations 2006.
The upper and lower age limits were removed. Workers under 18 and over 65 have the same rights to redundancy payment (after they have completed the minimum employment qualifying period).
Age and length of service are still taken into account when redundancy payments are calculated. Employers need to make sure that their calculating method complies with current requirements and that the way payments are worked out can be objectively justified.
Employers need to consider the value of each employee when they decide who to make redundant. They should consider the needs of the business, job requirements and the skills and capabilities of their staff.
This approach does not credit the fact that the 'last in' may be a crucial addition to the workforce. This could also lead to age discrimination. It is recommended that employers make their choice objectively, based on staff skills and the needs of the business.
Employers considering redundancies should make sure that all staff involved in the selection and decision-making process are aware that it is unlawful to make a decision based on age or other discriminatory grounds.
If used, this must be offered to all staff, regardless of age. You may be surprised at who applies.
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