Redundancy payment definition

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Drafting checklist for claim or response—unfair dismissal: redundancy

Drafting checklist for claim or response—unfair dismissal: redundancy Both parties • Was the Claimant an employee? See Practice Notes: Entitlement to claim unfair dismissal—Eligibility and Employee status • Did the Claimant have requisite qualifying service, or does an exception apply? See Practice Note: Qualifying period for unfair dismissal • Has the Claimant complied with the requirement for early conciliation or does one of the exemptions apply? See Practice Note: The early conciliation requirement • Is the claim brought within the three-month time limit, or the period as extended if the requirement for early conciliation applies? See Practice Notes: Unfair dismissal time limit and The early conciliation requirement—Extension to time limits (the 'stop the clock' provisions) • Is the contract of employment arguably void for illegality? See Practice Note: Entitlement to claim unfair dismissal—Illegality • Does the Claimant fall within a category of employee excluded from unfair dismissal protection, eg police constables. See Practice Note: Entitlement to claim unfair dismissal—Particular types of employment • Was the Claimant’s work based in Great...

Redundancy—individual consultation checklist for employers

Redundancy—individual consultation checklist for employers This Checklist outlines steps to be taken in individual redundancy consultation, whether or not consultation has also taken place at a collective level. It sets out practical considerations involved in planning a redundancy process and covers what should be discussed at open meetings with affected employees, what should be included in letters to affected employees, what should be discussed at individual consultation meetings, what should be included in the notice of dismissal and information to be given about the right of appeal. For further guidance on individual redundancy consultation obligations generally, see Practice Notes: Redundancy—fair procedure: individual consultation and How to carry out individual redundancy consultation. This Checklist assumes that the employer has determined whether collective consultation is required (see Checklist: Redundancy—collective consultation checklist for employers—Identify redundancy situation). This Checklist is to be used: • where there is an obligation to consult collectively as, even where that obligation is fulfilled, the employer must still consult individually with the employees • where there is no obligation...

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Definition of redundancy

This Practice Note examines the two different statutory definitions of 'redundancy'.The first is found in the Employment Rights Act 1996 (ERA 1996). Whether or not it is satisfied determines:•whether an employee may be entitled to a statutory redundancy payment (see Practice Note: Entitlement to statutory redundancy payment)•whether, in the context of an unfair dismissal claim, the reason for dismissal is redundancy (which is one of the potentially fair reasons for dismissal—see Practice Note: Reason for dismissal—redundancy)For further information regarding this first definition, see: Redundancy payment entitlement, and fair reason for dismissal, below.The second statutory definition is found in the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992), and is relevant in collective redundancy situations. This definition must be satisfied (as well as other criteria) before the obligation to inform and consult appropriate representatives will arise (see Practice Note: Collective redundancy—the triggers for the statutory consultation obligations).For further information regarding this second definition, see: Definition of redundancy for collective redundancy consultation, below.In many redundancy situations, whether the dismissal satisfies...

Contractual redundancy payments

This Practice Note considers when an employee may be entitled to a redundancy payment under a contractual redundancy scheme (enhanced or occupational redundancy scheme or redundancy policy) and the interaction with the statutory redundancy scheme. It outlines the enhancements that are typically offered by employers. It also considers potential issues such as whether an employer can defeat entitlement under an enhanced redundancy scheme by giving notice to employees for another, non-redundancy reason. Remedies, age discrimination and taxation issues are also examined.Under the Employment Rights Act 1996 (ERA 1996), an employee who is dismissed by reason of redundancy after two or more years’ continuous employment will be entitled to a statutory redundancy payment, based on their age, length of service and average weekly pay, subject to a cap.For further information, see Practice Note: Entitlement to statutory redundancy payment.However, it is relatively common for employers, particularly larger employers and those that are unionised, to pay redundancy payments to redundant employees in excess of the statutory redundancy payment. These are often known as...

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ET3 Response to claim for statutory redundancy payment

ET3 Response to claim for statutory redundancy payment [Insert in para 6.1 of response form ET3:] 1 It is [accepted OR not accepted OR denied] that the Claimant was employed by the Respondent as a [insert job title, eg ‘lorry driver'] from [insert start date of employment] until his dismissal on [insert end date of employment]. 2 It is [accepted OR not accepted OR denied] that at the date of termination the Claimant was [insert number] years old and paid £[insert number] per week (gross). [The Claimant was in fact [insert number] years old]. [The Claimant was in fact paid £[insert number] per week (gross)]. [Insert details of why the claim for a statutory redundancy payment is denied. Two examples are provided below.] Example 1: 3 It is denied that the Claimant was dismissed for reason of redundancy. The Claimant was in fact dismissed on the ground of his capability. Specifically, the Claimant was dismissed after failing to improve his accuracy...

Statement of calculation of statutory redundancy payment

Statement of calculation of statutory redundancy payment [Insert name of employee] Your redundancy payment has been calculated in accordance with the statutory redundancy scheme as set out in the Employment Rights Act 1996. On the date on which your employment terminated for redundancy you had completed [insert number] years of continuous employment and were [insert age] years old. By statute you are entitled to: 1½ weeks' pay for each complete year of employment in which you were not below the age of 41; 1 week's pay for each complete year of employment between the

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If an employee is laid off, are they still entitled to receive pension contributions, car allowances and other contractual entitlements?

If an employee is laid off, are they still entitled to receive pension contributions, car allowances and other contractual entitlements? In common industrial parlance, a 'lay-off' occurs when the employer temporarily shuts down its operation because it cannot find any or enough work for its employees. For further information, see the section of Practice Note: Redundancy payments for lay-offs and short time, entitled Lay-off generally. When an employee is laid off, their employment will continue unless and until the employee resigns and claims a redundancy payment under

Are employees with fewer than two years' continuous service counted for the purpose of triggering statutory collective consultation obligations on redundancy?

Are employees with fewer than two years' continuous service counted for the purpose of triggering statutory collective consultation obligations on redundancy? According to the Trade Union and Labour Relations (Consolidation) Act 1992, where an employer is proposing to dismiss as redundant 20 or more employees at one establishment within any period of 90 days or less, this gives rise to statutory obligations to: • inform • consult • notify the Secretary of State in the Department for Business, Energy and Industrial Strategy This statutory consultation obligation is separate from and in addition to: • any consultation to ensure the dismissal is fair • any duty to inform and consult in relation to a relevant transfer under Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 'Employee' in this context means an individual who has entered into or works under a contract of service or of apprenticeship. Whether or not an individual falls within this definition will, therefore, depend on their employment status (subject to any express...

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No causal link between old incorrect benefit statements and member’s decision to early retire (Miss D, CAS-58806-H1J6)

Pensions analysis: In the determination of Miss D, CAS-58806-H1J6, the Deputy Pensions Ombudsman (DPO) has rejected a complaint about the provision of incorrect information about a member’s retirement age which was provided many years before retirement. The DPO found that, while the statements were negligent and Miss D had acted in good faith, she should have contacted the Scheme at that time to obtain up to date information and she had also failed to mitigate her loss. Martin Scott of gunnercooke LLP looks at the decision.

Tax weekly highlights—24 August 2023

This week's edition of Tax weekly highlights includes: (1) the Russian government’s announcement that it has suspended substantially all of the UK-Russia double tax treaty, (2) HMRC’s new guidance relating to the Transfer Pricing Records Regulations 2023, and (3) analysis of the Upper Tribunal’s decision in JTI Acquisitions Company (2011) Ltd v HMRC

View the latest UK Parliament Acts documents on Redundancy payment

135 The right

135  The right(1)     An employer shall pay a redundancy payment to any employee of his if the employee—(a)     is dismissed by the employer by reason of redundancy, or(b)     is eligible for a redundancy payment by reason of being laid off or kept on short-time.(2)     Subsection (1) has effect subject to the following provisions of this Part (including, in particular, sections 140 to 144, 149 to 152, 155 to 161 and 164).