David Cameron’s New Year’s message delivered a few days ago endeavoured to take an optimistic tone on the prospects for the economy in 2013, as you would expect.
Of course we may recall similar misplaced optimism at the beginning of the previous year which proved to be over optimistic, with the economy shrinking back into recession in the second quarter before rallying in autumn with output increasing by a single percentage point.
John Philpott, director of the Jobs Economist, has sadly stated that job insecurity will remain high, with unemployment actually increasing due to growth in the population outstripping the number of jobs being created. Coupled with anaemic growth in the economy as a whole, there is a risk of further redundancies and job losses if conditions in the economy remain harsh.
It is important to note that despite recently proposed legislation to water down basic employment rights (please see our previous blog) the majority of individuals who are employed will have in place safeguards in the event of a redundancy situation. Employees with more than two years continuous service will be entitled to a redundancy payment. The person primarily liable to pay a redundancy payment is the employer themselves. The employee should receive a statement advising them of how their statutory redundancy payment has been calculated. This payment is based on age and length of service and it is important that it is accurate. It is possible that additional sums may be payable under a ‘Compromise Agreement’.
We are frequently approached by Clients seeking advice on the terms and effect of signing such an agreement and more often than not an employer will meet the reasonable legal fees of such advice being sought. We hope that you are not in the unfortunate position whereby you must find a new job due to redundancy, but if you are then you need to ensure you get the best redundancy package possible from your ex-employer.
Please do not hesitate to contact us if you require advice or assistance with any employment law matter.
All information is correct on the date of posting.