The following Employment guidance note provides comprehensive and up to date legal information covering:
An employee is entitled to a redundancy payment when they are dismissed by reason of redundancy.
A worker is entitled to a redundancy payment when:
they are an employee (see: Is the worker an employee below)
they have been continuously employed for not less than two years at the ‘relevant date’ (see: The 'relevant date' and Period of continuous employment below)
they have been dismissed (see: Dismissal below), and
the dismissal was by reason of redundancy (see: By reason of redundancy below)
An employee may also claim a statutory redundancy payment if they are laid off (as defined), or are put on short-time working (as defined) for a specified number of weeks. For further guidance, see Practice Note: Redundancy payments for lay-offs and short time.
A worker must be an employee before they can claim a redundancy payment. Some types of worker who would normally be excluded are brought within the redundancy payments provisions by special legislation, and other classes of worker are excluded.
The definition of 'employee' for these purposes is 'an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment'. Contract of employment means either a contract of service
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