EMPLOYMENT LAW & PRACTICE
REDUNDANCY
Outcomes
By the end of this unit, you should be able to:
✓ Analyse the merits of employees’ redundancy payment claims; and
o Calculate statutory redundancy payments.
✓ Apply redundancy selection criteria appropriately; and
o Explain how redundancies may be handled fairly.
✓ Assess the other claims which may arise from a redundancy dismissal.
Unit Workshop Tasks
In this unit workshop you will:
✓ Review your answers to the Preparatory Tasks;
✓ Work individually, using the flowchart, to prepare an analysis of the legal issues; and
o Options involved in a more complex redundancy scenario; and
✓ Identify, assign relative weight to (according to the commercial needs of the employer); and
o Then apply fair redundancy selection criteria to a range of employees.
Contents
Redundancy 2
Remedies 9
not for resale or distribution
, EMPLOYMENT LAW & PRACTICE
Redundancy
Ch4 p135
Overview
❖ 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:
o His employer offered him a suitable alternative job; and
o The employee accepted this OR
o The employee unreasonably refused this.
Key legislation – Employment Rights Act 1996 (ERA96)
Is the Time Limit? ❖ Must:
claimant o Make a claim in writing to the employer or refer the
eligible to matter to a tribunal.
bring a o Within 6 months beginning with the “relevant
redundancy date” (s164).
claim? ❖ An employment tribunal may, if it considers it just and
equitable, extend the time-limit to 12 months.
❖ Relevant date (s145) = same as EDT for Unfair Dismissal
i.e.
o Termination with notice = date notice expires.
o Termination without notice = date of the dismissal.
▪ Even if there is PILON.
o Failure to renew fixed contract = Date the fixed
term expires.
o Constructive dismissal =
▪ Date employee departs OR
▪ Date employee’s notice expires (if the
employee gives notice).
Employee? ❖ Must be an “employee” (s135) (3.3, p96).
o Employee = “An individual who… works under… a
contract of employment” (ERA 1996, s230(1)).
o Evidenced by existence of written statement of
terms: these must be given to “employees” (ERA
1996, s1(1)).
o Other items to support being an employee:
▪ Worked regularly for [X] years no issue that
they expected to work and to be paid for the
work;
▪ Clearly took instructions from [X] at the
employer;
not for resale or distribution
REDUNDANCY
Outcomes
By the end of this unit, you should be able to:
✓ Analyse the merits of employees’ redundancy payment claims; and
o Calculate statutory redundancy payments.
✓ Apply redundancy selection criteria appropriately; and
o Explain how redundancies may be handled fairly.
✓ Assess the other claims which may arise from a redundancy dismissal.
Unit Workshop Tasks
In this unit workshop you will:
✓ Review your answers to the Preparatory Tasks;
✓ Work individually, using the flowchart, to prepare an analysis of the legal issues; and
o Options involved in a more complex redundancy scenario; and
✓ Identify, assign relative weight to (according to the commercial needs of the employer); and
o Then apply fair redundancy selection criteria to a range of employees.
Contents
Redundancy 2
Remedies 9
not for resale or distribution
, EMPLOYMENT LAW & PRACTICE
Redundancy
Ch4 p135
Overview
❖ 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:
o His employer offered him a suitable alternative job; and
o The employee accepted this OR
o The employee unreasonably refused this.
Key legislation – Employment Rights Act 1996 (ERA96)
Is the Time Limit? ❖ Must:
claimant o Make a claim in writing to the employer or refer the
eligible to matter to a tribunal.
bring a o Within 6 months beginning with the “relevant
redundancy date” (s164).
claim? ❖ An employment tribunal may, if it considers it just and
equitable, extend the time-limit to 12 months.
❖ Relevant date (s145) = same as EDT for Unfair Dismissal
i.e.
o Termination with notice = date notice expires.
o Termination without notice = date of the dismissal.
▪ Even if there is PILON.
o Failure to renew fixed contract = Date the fixed
term expires.
o Constructive dismissal =
▪ Date employee departs OR
▪ Date employee’s notice expires (if the
employee gives notice).
Employee? ❖ Must be an “employee” (s135) (3.3, p96).
o Employee = “An individual who… works under… a
contract of employment” (ERA 1996, s230(1)).
o Evidenced by existence of written statement of
terms: these must be given to “employees” (ERA
1996, s1(1)).
o Other items to support being an employee:
▪ Worked regularly for [X] years no issue that
they expected to work and to be paid for the
work;
▪ Clearly took instructions from [X] at the
employer;
not for resale or distribution
