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Redundancy Insurance

Redundancy Insurance

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Redundancy Laws

In order to claim a redundancy payment from your employer you must have been "dismissed" and this must have been "by reason of redundancy". In the majority of cases this will be obvious, but sometimes disputes arise as to whether someone has been dismissed or left of their own volition, and if they have been dismissed if this was because they were being made redundant.

The law says that an employee is dismissed by reason of redundancy if the dismissal is attributable wholly or mainly to:-

The fact that his employer has ceased, or intends to cease (i) to carry on the business for the purposes of which the employee was employed by him, or (ii) to carry on that business in the place where the employee was so employed, or the fact that the requirements of the business (i) for employees to carry out work of a particular kind, or (ii) for employees to carry out work of a particular kind in the place where the employee was employed by the employer have ceased or diminished or are expected to cease or diminish"

In other words an employee is redundant if the whole business closes down, or if the business continues, but there is no longer a need at that particular place for workers of the employee's kind (note it is the class or type of worker, rather than the individual, who should no longer be required).

Although redundancy pay can seem to be the answer to meeting all your commitments experience has shown that it often is used up far more quickly than seems possible. Redundancy Protection insurance (often called Accident, Sickness & Redundancy Insurance)is the answer.

UKinsuranceNET Redundancy Insurance can be tailored to suit your individual needs. Simply click for a quote. Alternatively speak to one of our highly experienced consultants today on 0845 365 1264 or fill out our online quote request form and one of our advisors will contact you.

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