Redundancy
Definition 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
Definition 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
