REDUNDANCY
There is a redundancy situation if:
There is an eligible employee who has been dismissed by the reason
of redundancy.
If so: That employee will be entitled to, at a minimum, a statutory
redundancy payment (s163, ERA 1996).
Unless:
The employer offers the employee a suitable alternative job
The employee has accepted this job or
The employee has unreasonably refused the offer of a suitable alterative
job.
Can the claimant bring a redundancy claim?
(1) Is the claimant eligible to bring a redundancy claim?
Time Limit
Must:
o Make a claim in writing to the employer or refer the matter to a tribunal.
o Within 6 months beginning with the “relevant date” (s164).
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.
Employee?
Must be an “employee” (s135)
o Employee = “An individual who… works under… a contract of
employment” (ERA 1996, s230(1)).
Evidenced by existence of written statement of terms: these must be given to
“employees” (ERA 1996, s1(1)).
Must not be in an excluded class
E.g., crown employees, ‘share’ mariners and certain domestic servants.
Must have had 2 years of continuous employment
(2) Has the employee been dismissed?
Has there been:
An expiry of non-renewal of a fixed term contract
Actual dismissal
Constructive dismissal due to a repudiatory breach
There is a redundancy situation if:
There is an eligible employee who has been dismissed by the reason
of redundancy.
If so: That employee will be entitled to, at a minimum, a statutory
redundancy payment (s163, ERA 1996).
Unless:
The employer offers the employee a suitable alternative job
The employee has accepted this job or
The employee has unreasonably refused the offer of a suitable alterative
job.
Can the claimant bring a redundancy claim?
(1) Is the claimant eligible to bring a redundancy claim?
Time Limit
Must:
o Make a claim in writing to the employer or refer the matter to a tribunal.
o Within 6 months beginning with the “relevant date” (s164).
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.
Employee?
Must be an “employee” (s135)
o Employee = “An individual who… works under… a contract of
employment” (ERA 1996, s230(1)).
Evidenced by existence of written statement of terms: these must be given to
“employees” (ERA 1996, s1(1)).
Must not be in an excluded class
E.g., crown employees, ‘share’ mariners and certain domestic servants.
Must have had 2 years of continuous employment
(2) Has the employee been dismissed?
Has there been:
An expiry of non-renewal of a fixed term contract
Actual dismissal
Constructive dismissal due to a repudiatory breach
