Redundancy law

Solicitors here can supply practical human resources advice and documentation enabling clear, fair management of employer/employee relations. Clients can obtain from our solicitors a fast and informed response on:

• redundancy, dismissal and discipline
• contracts and staff manuals
• occupational health/disease and safety
• severance compensation
• compromise agreements
• unfair competition post-termination
• discrimination, race, sex, disability and age
• employment tribunal proceedings
• harassment at work
• industrial relations generally

Definition of redundancy
Dismissal by reason of redundancy is defined in the Employment Rights Act 1996 as being where the dismissal is attributable wholly or mainly to:

the fact that the employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased, or intends to cease, to carry on that business in the place where the employee was so employed; or

the fact that the requirements of that business for employees to carry out work of a particular kind, or for employees to carry out work of a particular kind in the place where he was so employed, has ceased or diminished or are expected to cease or diminished.

The definition covers three basic situations:

1. where the employer ceases to carrying on business (other than involving a transfer of an undertaking) on a permanent or temporary basis;
   
   
2. where the employer ceases business in the place where the employee is employed; and
   
   
3. where the employer's business no longer requires any employees or as many employees to do a particular kind of work (whether generally or in the place where the employee was employed).