Latest Information

Redundancy & Maternity Leave

08/06/2009

The newly formed Alliance Against Pregnancy Discrimination has identified a sharp rise in the number of pregnant women and new mothers being selected for redundancy ahead of other colleagues.

According to the Equality and Human Rights Commission approximately 30,000 women per year lose their jobs as a result of pregnancy. This figure is expected to rise dramatically due to the credit crunch.

Many employers are unaware that women on maternity leave are afforded extra protection by the Maternity and Paternity Leave Regulations 1999 when an employee on maternity leave is at risk of being made redundant from her existing role.

If a suitable alternative vacancy exists within the company, or an associated company, an employee on maternity leave is actually entitled to be offered this vacancy in preference to any other employees also affected by the redundancy but not absent on maternity leave.

This new employment must take effect immediately on the ending of the previous contract. The type of work must be suitable and appropriate; additionally the terms and conditions of the employment must not be substantially less favourable than if she had continued to be employed under her old contract.

If an employer fails to offer the vacancy to the employee the dismissal will be deemed to be unfair, allowing the employee to bring a claim in the Employment Tribunal. If such a claim is successful an employee can be awarded up to £66,200.00, however this will depend on individual circumstances and losses.

Furthermore if the redundancy can be directly linked to the pregnancy or maternity leave she may be able to make a claim for unlawful sex discrimination. The award for such a claim is unlimited and will have direct reference to the injury to feelings suffered.

If no suitable alternative vacancy exists the employee will be redundant, however she will be entitled to her redundancy payment, in addition to a notice period and written statement of the reasons for her dismissal.

John Hassells of KBL says "In these difficult times many employees are facing redundancy. Employers should proceed with extra caution where an employee is pregnant to ensure fairness and to avoid claims. In the last 12 months we have seen a significant increase in enquiries from employees and employers about redundancy. Employees are increasingly challenging redundancy as both unfair and discriminatory".

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