Redundancy

Employees have a number of rights in a redundancy situation. Employees who are dismissed by reason of redundancy may be entitled to a statutory redundancy payment and they may be able to challenge the termination of their employment as an unfair dismissal. To fall within the statutory definition of "redundancy" set out in section 139(1) of the Employment Rights Act 1996 (ERA 1996), an employee's dismissal must be "wholly or mainly attributable to" the employer:

  • Ceasing or intending to cease to carry on the business for the purposes of which the employee was employed by it (business closure)
  • Ceasing or intending to cease to carry on that business in the place where the employee was so employed (workplace closure)
  • Having a reduced requirement for employees to carry out work of a particular kind or to do so at the place where the employee was employed to work (reduced requirement for employees)

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