| Commentary

(h) Closure of workplace

| Commentary

(h)     Closure of workplace

If the employer permanently closes down his operations, it follows that he can no longer employ the employees. It has been held therefore that a permanent closure of the workplace effects a termination of the contracts of employment (Glenboig Union Fireclay Co Ltd v Stewart (1971) 6 ITR 14). A temporary shutdown may, depending on the circumstances, be a repudiatory breach of contract, but it does not cause an automatic termination of the contract of employment (Whitworth v Bilabbey Ltd (t/a Beeline Taxis) [1975] IRLR 206).

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