Redundancy Rules and Associated Wage Structure
// July 10th, 2009 // No Comments » // Employment Law
The most problematic economic scenario for all industries is the recession. The problem with recession is that the output or production of almost all sectors fall and it would lead to job losses and redundancy among employees. Redundancy will be prevalent in all industries. The management and the employees must both know the various laws associated with redundancy. This is done to ensure that the redundancy is done in a fair manner. Redundancy laws vary with each country. In England if the management decides to make twenty or more employees redundant they have to discuss it with the employees. They have to do so within a period of 90 days. Redundancy causes agitation and uncertainty among employees.
The one thing that the management must ensure while imposing redundancy is that it has to follow a fair policy. The organization must clearly specify the selection criteria for redundancy. There is various wage issue associated with redundancy. An employee has to be paid redundant payments if he has worked for at least two years in the organization. The pay also varies with the age of the employees. If an employee is below 22years of age he is entitled to get half a week’s pay for every year that he had serviced. If he is between 22 and 41then he gets one week’s pay. Organizations must ensure that if they are to impose redundancy then it must be done in a fair manner.
