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Redundancy occurs where an employer needs to reduce its workforce. Redundancy may happen because a workplace is closing down, or because fewer employees are (or are expected to be) needed for work of a particular kind.
Redundancy is accepted in law as one of the potentially fair reasons for which an employer may dismiss its employees. However, the law sets out strict guidance as to the procedure which an employer must follow when making its employees redundant.
The law does not consider it to be a redundancy if the employer immediately takes on a direct replacement however an exception to this would be a “bumping” ” scenario.
The meaning of Redundancy under the Employment Rights Act 1996
Redundancy is dealt with under section 139(1) Employment Rights Act 1996. According to s.139(1) an employee will be dismissed by reason of redundancy if
…. the dismissal is wholly or mainly attributable to—
- the fact that his employer has ceased or intends to cease—
- to carry on the business for the purposes of which the employee was employed by him, or
- 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 the employee was employed by the employer, have ceased or diminished or are expected to cease or diminish.
If an employee is dismissed by reason of redundancy, he or she will be entitled to receive their contractual notice period (or damages for failure to give notice).
At Matt Rowland Solicitors, our Employment Lawyers can provide advice on any situation arising from a redundancy or possibly fear of redundancy. Call us today and take advantage of our free 30 minute consultation
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