REDUNDANCY PROCEDURE PLAN
1. If an eligible employee
2. Is dismissed
3. By reason of redundancy
- That employee will be entitled to, at a minimum, a statutory redundancy payment (s163, ERA 1996).
- Unless
o His employer offered him a suitable alternative job and
o The employee accepted this this OR
o The employee unreasonably refused this
1) Is the claimant eligible to bring a redundancy claim?
Time Limit? - Must:
o Make a claim in writing to the employer or refer the matter to a tribunal.
o Within 6 months beginning with the “relevant date” (s164).
- An employment tribunal may, if it considers it just and equitable, extend the time-limit to 12
months
- Relevant date (s145) = same as EDT for Unfair Dismissal i.e.
o Termination with notice = date notice expires.
o Termination without notice = date of the dismissal.
Even if there is PILON.
o Failure to renew fixed contract = Date the fixed term expires.
o Constructive dismissal =
Date employee departs OR
Date employee’s notice expires (if the employee gives notice)
Employee? - Must be an “employee” (s135)
o Employee = “An individual who… works under… a contract of employment” (ERA 1996,
s230(1)).
o Evidenced by existence of written statement of terms: these must be given to
“employees” (ERA 1996, s1(1)).
2 years’ - Must have 2 years continuous employment (s155)
Continuous o From: Date employment commenced (check contract).
Employment o To: the “relevant date”
?
Excluded - Must not be an excluded class
Class? o Certain classes of employees cannot claim redundancy
o E.g. crown employees, ‘share’ mariners and certain domestic servants.
o Simply say employee is not in an excluded class.
2) Has the employee been dismissed? (s136 – Definition of Dismissal)
Actual dismissal - Contract is terminated by the employer (s136(1)(a)).
- With or without notice.
Constructive dismissal - Where employee is entitled to terminate without notice “by reason of the
employer’s conduct” (s136(1)I).
- Repudiatory breach of contract by the employer.
Express or implied term.
Last straw doctrine.
1. If an eligible employee
2. Is dismissed
3. By reason of redundancy
- That employee will be entitled to, at a minimum, a statutory redundancy payment (s163, ERA 1996).
- Unless
o His employer offered him a suitable alternative job and
o The employee accepted this this OR
o The employee unreasonably refused this
1) Is the claimant eligible to bring a redundancy claim?
Time Limit? - Must:
o Make a claim in writing to the employer or refer the matter to a tribunal.
o Within 6 months beginning with the “relevant date” (s164).
- An employment tribunal may, if it considers it just and equitable, extend the time-limit to 12
months
- Relevant date (s145) = same as EDT for Unfair Dismissal i.e.
o Termination with notice = date notice expires.
o Termination without notice = date of the dismissal.
Even if there is PILON.
o Failure to renew fixed contract = Date the fixed term expires.
o Constructive dismissal =
Date employee departs OR
Date employee’s notice expires (if the employee gives notice)
Employee? - Must be an “employee” (s135)
o Employee = “An individual who… works under… a contract of employment” (ERA 1996,
s230(1)).
o Evidenced by existence of written statement of terms: these must be given to
“employees” (ERA 1996, s1(1)).
2 years’ - Must have 2 years continuous employment (s155)
Continuous o From: Date employment commenced (check contract).
Employment o To: the “relevant date”
?
Excluded - Must not be an excluded class
Class? o Certain classes of employees cannot claim redundancy
o E.g. crown employees, ‘share’ mariners and certain domestic servants.
o Simply say employee is not in an excluded class.
2) Has the employee been dismissed? (s136 – Definition of Dismissal)
Actual dismissal - Contract is terminated by the employer (s136(1)(a)).
- With or without notice.
Constructive dismissal - Where employee is entitled to terminate without notice “by reason of the
employer’s conduct” (s136(1)I).
- Repudiatory breach of contract by the employer.
Express or implied term.
Last straw doctrine.
