Dear Howdidido
Thank you for your questions. Please see below.
Do any of us have any more or less protection against redundancies? Which if any of us would get priority in those roles? If there is no priority how will role allocation be decided?
Individuals on maternity leave/SPL have certain protection in a redundancy situation. They are not protected from selection and can still be made redundant. However, if you are absent on maternity leave or SPL at the time of redundancy, you will have a right of first refusal for any “suitable alternative vacancy” if such a role is available.
It can be difficult to establish whether this protection applies because it depends on the structure of the redundancy exercise. There are different ways that redundancy situations can be structured, and the employer has quite a lot of scope for deciding how to proceed.
(1) One scenario is that the employer is effectively deciding who is leaving. An employer may be reducing the number of people performing a particular role. In that scenario, the employees in the team either get to stay on in the same role, or they are selected for redundancy. In deciding who to select for redundancy, the employer has to use fair and objective selection criteria. They must be careful to ensure that the fact that you are on maternity leave/shared parental leave (SPL) does not prejudice you in any way. For example, they cannot mark you down for pregnancy related absence. If they are taking into account appraisal ratings from a period in which you were off on maternity leave/SPL, they need to be very careful about how they score you. It could still be that even after using fair selection criteria, you fall to the bottom of the list and are provisionally selected for redundancy. Unless another job becomes available in the organisation, you can be fairly dismissed as redundant. You are not specially protected because of maternity leave/SPL in this scenario. There may still be other vacancies at the employer that you can apply for but you don’t have any special priority to be appointed into those alternative roles.
(2) Another scenario is that there is a reduction in headcount, but the remaining roles are changing a bit more significantly and the employer is instead deciding who is staying. In that case, all the individuals in a team may be provisionally selected for redundancy, but the employer makes some “suitable alternative roles” available. In that case, all employees can apply for these posts. The employer selects in the people who are going to stay. Those unsuccessful with their application will be made redundant (unless some other role becomes available). If the employer uses this method of selecting into new posts (rather than selecting out) then you (and anyone else on maternity leave/SPL) would have a right of first refusal on the suitable alternative role even if you are not the employer’s first choice. This is what people tend to be talking about when they say that those on maternity leave/SPL are protected from redundancy.
There is then also the middle ground where the employer is mainly deciding who is leaving, but they have other vacancies available generally in the organisation. It is a bit less clear whether remaining roles are a suitable alternative that you should be given first refusal on, or whether they are different enough to just be equally open to everyone at risk of redundancy to apply for. It is then in your interest to be able to show that a role should legally be classed as a “suitable alternative vacancy”.
In this case, there are a number of you with the same protection. While you may be prioritised over staff not on maternity or SPL, it will then be a level playing field between you.
Does SPL afford the same protection as maternity leave? I will probably be on SPL when the redundancies happen.
Yes. One practical difference though is that employees have more flexibility about when to take SPL so you could try to time it to coincide with redundancy date to give you added protection.
If they happen while I am on annual leave do I have any protection?
While every employee has the right to be notified of vacancies, those on annual leave do not have the same right of first refusal as those still on maternity leave/SPL even if that annual leave immediately follows a period of maternity leave or SPL.
We have enhanced maternity pay which we have to repay if we don't return for at least 12 weeks. If we take redundancy (either voluntary or not) will we need to repay this? If we resign before the redundancy goes through (i.e. find another job) would we also need to repay?
If you were to be made redundant, you would maintain your statutory entitlement until it runs out. You would also be entitled to notice pay, which will depend on your contract and statutory entitlements. You may also be entitled to a payment in lieu of accrued but untaken holiday (which could be significant if you have had a long period of maternity leave).
Any enhanced maternity pay could be clawed back if you leave. Most employers won’t do this in a redundancy situation, however, it is a matter of what the policy says, and the discretion of the employer in most cases to do the right thing.
If you resign that can be good because you get a new job, but you should discuss the impact of this with your employer. Not only could it mean you have to repay the enhanced maternity pay, but if you resign in order to leave earlier than the date your employment was due to end by reason of redundancy, you could also forfeit your statutory redundancy payment and any enhancement. This is because legally the employer doesn’t need to pay this unless it is them who dismiss you as redundant. However, as it will suit the employer to have someone go voluntarily, they may agree a release date with you that allows you to start a new job, keep your redundancy pay and keep your enhanced maternity pay. The key here is that you should get matters agreed in writing, and instead of resigning, try to agree an earlier end date by reason of redundancy. If your employer will not agree to an early release date, you should think carefully about whether it is worth forfeiting the redundancy pay in order to secure the new role. If you resign (rather than leaving by reason of redundancy) it can also have an impact on your ability to claim benefits.
If your employer is offering an enhanced redundancy package, they might ask you to sign a settlement agreement which would include a waiver of claims (including in relation to discrimination or unfair dismissal). You would need to decide whether or not to sign this, and would need to take legal advice on the terms and effects of the agreement.
@Howdidido
Ive just found out there are rumours my company will be making significant redundancies this year.
I am on maternity leave which I believe protects me a little in terms of redundancies.
However
all 4 people who do the same role as me are also on maternity leave (my poor boss...!). There are 3 maternity covers covering our roles. We expect the number of positions doing this role to decrease but unsure by how many.
I will be ending my SPL at the start of August, but am taking August as Annual leave. I have been with the company 5 years.
A will return at the start of July taking July as annual leave. She has been with the company for 6 years.
B will return next month having taken 1 year Mat leave (plus AL at the end). She has been there 10 years
C will return probably in Feb 2021 having taken 1 year Mat leave. She has been with the company less than 1 year before going on leave.
All of us are under 40.
My questions are:
Do any of us have any more or less protection against redundancies? We expect them to happen in July or August but to be announced in April. but as yet have no idea of scale or exact dates.
We expect the number of roles to decrease. Which if any of us would get priority in those roles?
If there is no priority how will role allocation be decided?
Does SPL afford the same protection as Maternity leave? I will probably be on SPL when the redundancies happen.
If they happen while I am on Annual leave do I have any protection?
Many thanks!