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Summary REDUNDANCY - Employment Law Elective Revision Notes
DISTINCTION ACHIEVED Workshop 4 (Redundancy) revision notes based on ULaw reading list.
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RedundancyDefinition of redundancy – s139(1) ERA 1996
s139(6) ERA 1996 - the words ‘cease’ and ‘diminish’ mean cease and diminish either
permanently or temporarily and for whatever reason
Redundancy occurs in three main situations:
• job redundancy;
• place of work redundancy; and
• employee redundancy (our labels)
,• if an eligible employee
• is dismissed
• by reason of redundancy
• that employee will be entitled to, at a minimum, a statutory redundancy payment
(s163, ERA 1996)
• UNLESS
» His employer offered him a suitable alternative job and
» The employee accepted this OR
» The employee unreasonably refused this
*NB:
§ The contract of employment may provide for more generous payments
§ Where an employee is dismissed by reason of redundancy, this may also give
rise to potential wrongful dismissal and/or unfair dismissal claims
§ Women on maternity leave have special protection in a redundancy situation
, 1) Is the claimant eligible to bring a redundancy claim?
Time limit
v Must:
• Make a claim in writing to the employer or refer the matter to a Tribunal
• Within 6 months beginning with the “relevant date” (s164)
v An employment Tribunal may, if it considers it just and equitable, extend the
time-limit to 12 months
v Relevant date (s145) = same as EDT for Unfair Dismissal i.e.
¾ Termination with notice = date notice expires
¾ Termination without notice = date of the dismissal
§ Even if there is PILON
¾ Failure to renew fixed contract = Date the fixed term expires
¾ Constructive dismissal =
§ Date employee departs OR
§ Date employee’s notice expires (if the employee gives notice)
Employee
v Must be an “employee” (s135)
¾ Employee = “An individual who… works under… a contract of
employment” (s230(1))
Evidenced by existence of written statement of terms
These must be given to “employees” (s1(1)). (If not given- not conclusive that the
person is not an employee).
2 years’ continuous employment
v Must have 2 years continuous employment ‘by the relevant date’ before they are
eligible to claim a redundancy payment (s155 ERA 1996)
¾ From: Date employment commenced (check contract).
¾ To: the “relevant date”
Excluded class
v Must not be an excluded class
o Certain classes of employees cannot claim redundancy
o E.g. crown employees, ‘share’ mariners and certain domestic servants.
o Simply say employee is not in an excluded class
, 2) Has the employee been dismissed? s136 definition of
dismissal
v Expiry and non-renewal of a fixed term contract.
o Always treated as a dismissal (s136(1)((b)).
(note: an employee is eligible for a payment on the non-renewal of his three-year
fixed term contract).
v Completion of a specific task.
v Actual dismissal?
o I.e. Contract is terminated by the employer (s136(1)(a)).
o With or without notice.
v Constructive Dismissal?
o Where employee is entitled to terminate without notice “by reason of the
employer’s conduct” (s136(1)I).
o Repudiatory breach of contract by the employer.
§ Express or implied term.
§ Last straw doctrine.
o Must be a cause of the employee leaving, not the principal or main cause
(Wright v North Ayrshire Council [2014] ICR 77).
o Employee must accept this within a “reasonable” time – if not they will
be deemed to have waived the breach.
o See notes on Constructive Dismissal.
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