Redundancy Tip #2: Notice
What is notice, how long is it and how much do you receive?
These are some of the most common questions when navigating through the redundancy process. And for good reason; knowing these details helps us to be prepared financially and mentally.
So what is it? Notice is the period of time between an employee receiving confirmation that their position is to be made redundant and their actual employment end date.
And how long is it? Check the employment contract for specific notice periods.
If notice periods are not stated in the contract or they refer to statutory notice periods. The following will apply;
Employed for 1 month- 2 years: 1 week's notice.
Employed for 2 years - 12 years: 1 week's notice for every compete year of employment.
Employed for 12 weeks or more: 12 weeks notice.
What about pay during notice periods? An employee should receive pay at their usual rate of salary for their entire notice period.
And pay in lieu of notice? Check the employment contract for a payment in lieu of notice clause. If it is included an employer may consider making a payment in lieu of notice to the employee, instead of them working this.
If pay in lieu of notice is not included in the employment contract, it should only be considered with an employee's prior signed agreement.
Contact us for help and further advice on the redundancy process.