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Redundancy-Does how length of service matter?

Hi, please can anyone tell me when it comes to redundancies does how long you have been employed make a difference a difference? Ie-does someone who has been employed for three years stand more of a chance of being made redundant than someone who has been there five years with all other factors being equall?
Not yet a total moneysaving expert...but im trying!!
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Comments

  • Andy_L
    Andy_L Posts: 13,051 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yes, "last-in, first-out" is a legtimate criteria (though not if just used on its own). Mainly becasue it is cheaper to pay off someone with less service
  • buel
    buel Posts: 674 Forumite
    Ah that's where i got confused- i thought the 'last in first out' criteria was illegal but what it is is it cant be used on it's own! Thanks for that! May i ask at what point are the workers allowed to see the criteria that the employers use for redundancies?
    Not yet a total moneysaving expert...but im trying!!
  • buel
    buel Posts: 674 Forumite
    Can anyone add anything further please?
    Not yet a total moneysaving expert...but im trying!!
  • the
    the Posts: 101 Forumite
    An interesting court case you may want to look at is Unite v Rolls Royce, and read the judges comments on how he reached is verdict.

    The length of service criteria is now covered under the age discrimination act, and whilst a company can give a benefit based upon an employees length of service, it is my understanding that this can only be for a maximum of 5 years, unless there is an equivalent age criteria existing in law, an example being people aged over 40 receiving a higher redundancy payout

    Please note that the above is not meant to be a statement of law, only what I think I know
  • Peelerfart
    Peelerfart Posts: 2,177 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    "last-in, first-out" is also favoured by some trade unions as well, in deciding who should leave.
    Space available for rent
  • buel
    buel Posts: 674 Forumite
    Hi again!
    I have a few questions that id like answered if possible? They are:
    1. The company i work for are about to make one or two office workers redundant(as opposed to manual workers), apparently they are using a 'points system' to decide, please can anyone tell me what that would be?
    2. There is one worker here who has been kept on after his 65th birthday on a yearly review, would he be likely to be one of the first to be made redundant due to his age?
    3. Are companies allowed to change the criteria for redundancies from one department to the next?
    4. What are the 'usual' criteria companies use when making redundancies?
    Not yet a total moneysaving expert...but im trying!!
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Allthough they probably should include the 65yo in the relevent pool they would be mad to make them redundant, much cheaper toi retire them.

    Criteria can be changed for each pool of workers depending on the companies needs allthough you woud expect a core set and only changes to the specifcs.

    So sickness you would expect to be in all criteria(or none) and if dropped/added for one group is was clear that is was to effect one person I think there would be grounds for a challenge.

    You shoud be told what criteria are being used for your group and how this will be applied.

    The coomon approach is to decide who you wnt to go then create a point system that achieves this
  • Andy_L
    Andy_L Posts: 13,051 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    buel wrote: »
    Hi again!
    I have a few questions that id like answered if possible? They are:
    1. The company i work for are about to make one or two office workers redundant(as opposed to manual workers), apparently they are using a 'points system' to decide, please can anyone tell me what that would be?
    2. There is one worker here who has been kept on after his 65th birthday on a yearly review, would he be likely to be one of the first to be made redundant due to his age?
    3. Are companies allowed to change the criteria for redundancies from one department to the next?
    4. What are the 'usual' criteria companies use when making redundancies?

    1. Anything that can be used to judge you is givien a points value & scores are compared. eg Qualifications, length of service, sickness record, staff apprasials, cost of redundancy etc

    2. Not sure - I think the law has just been changed to prevent compulsory retirement

    3. Yes, unless it is indirectory discriminatory - eg a unit with a disproportinate number of women has criteria that makes it easier to make them redundant

    4. As per point 1 plus are there any volunteers
  • nimbo
    nimbo Posts: 3,701 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    buel wrote: »
    Hi again!
    I have a few questions that id like answered if possible? They are:
    1. The company i work for are about to make one or two office workers redundant(as opposed to manual workers), apparently they are using a 'points system' to decide, please can anyone tell me what that would be?
    2. There is one worker here who has been kept on after his 65th birthday on a yearly review, would he be likely to be one of the first to be made redundant due to his age?
    3. Are companies allowed to change the criteria for redundancies from one department to the next?
    4. What are the 'usual' criteria companies use when making redundancies?


    1. - they should look at things like performance reviews, days off as sickness, qualifications, affordability - they can phrase it as this - but not cost...

    2. honestly couldn't say.... if they got rid of him purely on that it could be classed as age discrimination.... although they could possibly choose not to renew his contract at his next review... although if they were going ot give him a lump sum he may well volunteer??????????

    3. i don't think they are - although they may have different criteria for different work groups- as you have mentioned manual labour - i have no idea how that would work. there could also be functions they cannot get rid of - say an accountant, as i don't imagine that anyone could cover their duties.

    4. the answer is the same as question 1 really.

    Stashbuster - 2014 98/100 - 2015 175/200 - 2016 501 / 500 2017 - 200 / 500 2018 3 / 500
    :T:T
  • buel
    buel Posts: 674 Forumite
    Thank you so much for the very informative answers!! Andy L mentions qualifications may be a possible part of the criteria, bearing this in mind i now realise that i have many more qualifications (gained outside of work) than when i started work in my current job 3 years ago, should i give them my updated CV?
    Also, please could someone tell me the length of notice they will have to give me, bearing in mind i have 3 years service?
    Not yet a total moneysaving expert...but im trying!!
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