Definition of redundancy
Definition of redundancy

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Definition of redundancy
  • Redundancy payment entitlement, and fair reason for dismissal
  • Associated employers and LEAs
  • Applying the definition
  • Temporary recession
  • Example: temporary, part-time teachers
  • Payments for lay-off or short time and guarantee payments
  • Whether the cause of the redundancy situation is relevant
  • The whole business disappearing
  • Possible application of TUPE 2006
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit and IP completion day—implications for employment lawyers.

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:

  1. whether an employee may be entitled to a statutory redundancy payment (see Practice Note: Entitlement to statutory redundancy payment)

  2. 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 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

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