Redundancy and Your Rights as an Employee in Gibraltar

In the evolving landscape of Gibraltar’s employment market, understanding the legal framework surrounding redundancy is paramount for employees. This guide outlines the fundamental aspects of redundancy laws in Gibraltar and the rights they confer to employees facing redundancy.

Legal Foundation of Redundancy in Gibraltar

Redundancy occurs when an employer needs to reduce their workforce, typically due to economic pressures, business closures, or a decrease in demand for services. Gibraltar’s legal system provides clear directives to ensure that redundancies are handled fairly and transparently, safeguarding employees’ rights.

Notification and Consultation

The initial step in the process involves notifying the affected employees. Employers are required to engage in meaningful consultation with employees earmarked for redundancy, discussing possible alternatives, such as redeployment or varied working conditions.

Selection Criteria

The criteria for selecting employees for redundancy must be objective, fair, and consistent. Factors such as length of service, performance records, and skills may be considered, but they should be applied impartially to avoid discrimination.

Redundancy Pay

Employees in Gibraltar who have been made redundant are entitled to statutory redundancy pay, provided they have a minimum period of continuous service. The amount of pay is typically calculated based on the employee’s length of service, age, and weekly pay, up to a statutory maximum.

Rights to Appeal

Employees have the right to appeal against their selection. This process should be outlined in the company’s redundancy policy, allowing the employee to contest the decision if they believe the redundancy was not conducted fairly or the selection criteria were improperly applied.

Unfair Redundancy

If an employee believes their redundancy was unfair — for example, if the selection process was discriminatory or was a pretext for dismissal — they may have grounds to challenge the decision. Legal recourse could include a claim for unfair dismissal at an Employment Tribunal.

Impact of Redundancy on Contracts and Agreements

Redundancy can affect various contractual elements, including notice periods, severance packages, and non-compete clauses. Employees should review their employment contracts and seek legal advice to understand the full implications of redundancy on their specific terms of employment.

Support and Advice

Employees facing redundancy should seek advice and support to navigate the process. Legal advice can clarify individual rights and entitlements, ensuring that the redundancy process is conducted legally and fairly.

Contact Strait Law for Redundancy Advice

At Strait Law, we specialise in employment law, offering expert advice and representation to employees undergoing redundancy. Our team is committed to ensuring that your rights are fully protected and that you receive all the entitlements due to you under Gibraltar law.

For employees in Gibraltar, understanding your rights in the context of redundancy is crucial. It not only helps you navigate the process with confidence but also ensures that you are treated fairly and respectfully throughout.

For professional advice on redundancy and employment rights in Gibraltar, get in touch with Strait Law on +350 200 66177 or office@straitlaw.gi.