Redundancy in United Kingdom law concerns the rights of employees if they are dismissed for economic reasons in UK labour law.
Contents
Definition of redundancy
Section 139 of the Employment Rights Act 1996 defines the two situations in which a redundancy may occur:
(a) the fact that his employer has ceased or intends to cease—
(i) to carry on the business for the purposes of which the employee was employed by him, or(ii) to carry on that business in the place where the employee was so employed, or
(b) the fact that the requirements of that business—
Diminishing of work
While the first case envisages situations where an employer simply closes his business, the second scenario has caused trouble in its interpretation.
The function of the employee
The place of work
Geographical test now favoured, Bass Leisure Ltd v Thomas, best of both worlds for the employer potentially, though in that case the EAT made clear that any use of mobility clauses must be subject to the employee's situation.
Redundancy procedure
Bessenden Properties Ltd v Corness establishes the main principles on fairness of procedure, with Williams v Compair Maxam Ltd affirming it.