Redundancy occurs when an undertaking is closed down or there is amalgamation which causes severance of the legal relationship of a worker and employer as it existed immediately before the close down, arrangement or amalgamation, and as a result of and in addition to the severance that worker becomes unemployed or suffers any diminution in the terms and conditions of employment.
Is my employer required to pay me when I am made redundant?
Yes. The worker who is affected by the redundancy is entitled to be paid by the employer prior to the close down, arrangement or amalgamation.
How is my redundancy pay calculated?
There is no stated formula in the Labour Law. The redundancy pay is subject to negotiation between the employer or representative of the employer on the one hand and the worker or the trade union concerned on the other.
Can I make a complaint when there is a dispute regarding my redundancy pay and the terms and conditions of payment?
A worker may refer any dispute concerning the redundancy pay and terms and conditions of payment to the National Labour Commission for settlement and the decision of the Commission shall be final.