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Redundancy situations usually occur when one loses their job due to particular circumstances such as the closure of business or reduction in some staff. It could also arise due to the financial constraints of business, lack of work or reorganization within the firm. When an employer makes the decision to lay off 20 or more employees at the same time, the action is referred to as collective redundancy. When an organization feels that a group of their staff is becoming redundant, they are certain procedures they need to adhere to. When it comes to collective redundancies, the opzegtermijnen are critical. While in most cases the employees are likely to lose their jobs, a few cases may involve a change of work or time off.
Suspension of the contract
When an employee is laid off or put on short-time work, it means that the contract of employment is suspended. Therefore, if the employer then decides to make the employee redundant, he or she needs to reactivate the contract and then now proceed to dismiss the employee on the grounds of redundancy.An employer is required to give at least two weeks’ notice, depending on the period of service and a redundancy payment on the day of the dismissal.The payment should be in lumps sum, and both parties should keep a copy of the proof of payment
He or she should also consult with the affected employees before the final decision is made. All possible alternatives should also be considered before carrying out any dismissal. If an employer provides a reasonable offer but the employee turns it down, then the employee may lose their entitlement to a redundancy payment. However, this is only when the alternative was reasonable and did not involve worsening of the terms and conditions of work or loss of status. Any offer of alternative work to the employee needs to be in writing and should disclose all the necessary details.
When selecting employees for redundancy, employers need to apply a criterion that is reasonable and fair. In case an employee feels that they were unfairly selected for redundancy, they are entitled to make a claim for unfair dismissal. Unfair redundancy selection could be based maybe on your political or religious opinions, pregnancy or trade union activity. Unfair dismissals could also occur where a contract was breached, or the custom practice for redundancy was not observed.
The outlines and guidelines meant to protect both employees and employers can be overwhelming for the average person to understand. However, everything is made much simpler and clear so that both employers and staff understand the regulations and which they are supposed to engage within.