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Chapter

Cover Selwyn's Law of Employment

18. Redundancy  

The Redundancy Payments Act 1965 was enacted to compensate a long-serving employee for the loss of a right which he has in a job. The Act has been repealed and replaced by corresponding provisions in the Employment Rights Act 1996. This chapter discusses provisions of the Employment Rights Act 1996. It looks at what is a dismissal and the definition of redundancy, transferred redundancies, presumption of redundancy, and offers of alternative employment. Considered are whether redundancy dismissals are fair or unfair; offers of suitable alternative employment; excluded classes of employees; handling redundancies; claims for redundancy payments; payments by the Secretary of State; consultation on redundancies; the meaning of the term ‘establishment’; the consultation provisions of the legislation; and notification of mass redundancies to the minister.

Chapter

Cover Employment Law

6. Redundancy  

This chapter discusses redundancy law in the UK. Redundancy, which generally occurs when an employer reduces its workforce for economic reasons, is a common form of ‘potentially fair’ dismissal. There are three lawful ways in which selection for redundancy can be achieved: last-in-first-out, points-based approaches and employee selection processes. Redundancy payments must be equal to the statutory minimum and are often higher due to additional contractual arrangements which are more generous. Notice periods must also be honoured. UK redundancy law is often criticised because it is less procedurally cumbersome and requires employers to compensate less than is the case in other larger EU countries. This suggests that multi-national corporations dismiss their UK employees before counterparts elsewhere in Europe.

Chapter

Cover Employment Law in Context

20. Collective Redundancies  

This chapter examines the law on collective dismissals, which involves the large-scale lay-off of labour by an employer. It first considers the meaning of ‘collective redundancies’ and discusses the basic obligations of the employer, namely the provisions of information, consultation and notification. It then turns to the detail of Chapter II of Part IV of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA); the nature and extent of the employer’s obligations; and the consequences when the employer fails to comply with the statutory information and consultation procedures in section 188 of TULRCA.

Chapter

Cover Smith & Wood's Employment Law

8. Redundancy, reorganization, and transfers of undertakings  

This chapter discusses issues concerning an employer facing hard times or stiff competition, which may need to sell or contract out part of its operation, dismiss some employees, or change the terms and conditions of work. It tackles these situations together both for the practical benefit of grouping issues that arise from similar factual settings and for the analytical coherence of dealing together with protections designed to balance worker interests in job security with the general economic interest in lean, efficient, and flexible enterprise. The statutory definition of ‘redundancy’ is examined and is contrasted with termination of employment, or change in terms of employment, for other economic reasons. The chapter then deals with statutory redundancy payments and collective consultation on collective dismissals (whether for redundancy or other reasons). The discussion then focuses on distinctions in how tribunals assess the fairness of redundancy dismissals as opposed to other dismissals caused by reorganization which are categorized as being for ‘some other substantial reason’. Finally, the chapter addresses the law governing the transfer of undertakings, or ‘TUPE’, covering the transfer to the new employer of individual and collective relationships, the protection of existing terms and conditions, and the legality of transfer-related dismissals and transfer-related changes to the employment contract.

Chapter

Cover Smith & Wood's Employment Law

8. Redundancy, reorganization, and transfers of undertakings  

Ian Smith, Owen Warnock, and Gemma Mitchell

This chapter discusses issues which arise when an employer faces hard times or stiff competition. The employer may need to sell or contract out part of its operation, dismiss some employees, or change the terms and conditions of work. The statutory definition of ‘redundancy’ is examined and is contrasted with termination of employment, or change in terms of employment, for other economic reasons. The chapter then deals with statutory redundancy payments and collective consultation on collective dismissals (whether for redundancy or other reasons). The discussion then focuses on how tribunals assess the fairness of redundancy dismissals and on the different approach taken as to the fairness of dismissals caused by reorganization which are categorized as being for ‘some other substantial reason’. Finally, the chapter addresses ‘TUPE’, which is the law governing the transfer of undertakings and situation where a service provider loses or gains a contract. The issues relate to the transfer to the new employer of individual and collective relationships, the protection of existing terms and conditions, and the legality of transfer-related dismissals and transfer-related changes to the employment contract.

Chapter

Cover Concentrate Questions and Answers Employment Law

8. Statutory redundancy payments and consultation procedures  

The Q&A series offer the best preparation for tackling exam questions. Each book includes typical questions, bullet-pointed answer plans and suggested answers, author commentary, and illustrative diagrams and flowcharts. This chapter presents sample exam questions about statutory redundancy payments and consultation procedures. Through a mixture of problem questions and essays, students are guided through some of the key issues on the topic of statutory redundancy pay including the qualifying period to be eligible, the definition of redundancy, procedural fairness, case law on ‘work of a particular kind’, bumping, suitable alternative employment, and calculating statutory redundancy pay. Students are also introduced to the current key debates in the area and provided with suggestions for additional reading for those who want to take things further.