Where an employee is dismissed by reason of redundancy, the Employment Rights Act 1996 (ERA 1996) provides a mechanism for the employer to offer the employee, and for the employee to accept, new or renewed employment as an alternative to a redundancy payment. In certain circumstances, if this happens and the employee is re-engaged within four weeks, the original dismissal is deemed a ‘fiction’; the employee is considered not to be dismissed and is not entitled to a statutory redundancy payment. For more information, see Practice Notes: Renewal of contract, re-engagement and trial periods, Suitable alternative employment and Unreasonable refusal of alternative employment. Effect of renewal or re-engagement A distinction is made between the situation where: • the original contract is renewed • the employee is re-engaged under a new contract