Redundancy in United Kingdom law concerns the rights of employees if they are dismissed for economic reasons in

UK labour law United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK can rely upon a minimum charter of employment rights, which are found in Acts of Parliament, Regulations, common law and equit ...

Definition of redundancy

Section 139 of the

Employment Rights Act 1996 The Employment Rights Act 1996 (c. 18) is a United Kingdom Act of Parliament passed by the Conservative government to codify existing law on individual rights in UK labour law. History Previous statutes, dating from the Contracts of Employment ...

defines the two situations in which a redundancy may occur:

(a) the fact that his
employer Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any othe ...
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— :(i) for employees to carry out work of a particular kind, or :(ii) for employees to carry out work of a particular kind in the place where the employee was employed by the employer, have ceased or diminished or are expected to cease or diminish.

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. *'' Safeway Stores plc v Burrell'' *''Church v West Lancashire NHS Trust''

The function of the employee

*''The function of the employee'' *''Johnson v Nottinghamshire Combined Police Authority'' *''Murphy v Epsom College''

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.

Consultation

* ''Huddersfield Parcels Ltd v Sykes'' on double consultation (''Dyke v Hereford and Worcester County Council'' affirming) * Trade Union and Labour Relations (Consolidation) Act 1992, Section 188 * special circumstances defence

Selection criteria

* ''British Aerospace Plc v Green'' and ''FDR Ltd v Holloway'' on discovery of how criteria were applied * ''Clarke v Eley Kynoch Ltd'' on discrimination in criteria on gender

Re-organisations and redundancy

Redundancy payments

Redundancy payments are defined in law. In 2002, the

Court of Appeal A court of appeals, also called a court of appeal, appellate court, appeal court, court of second instance or second instance court, is any court of law that is empowered to hear an appeal of a trial court or other lower tribunal. In much of t ...

ruled in a case brought by staff employed at Albion's

Farington Farington is a village and civil parish in the South Ribble local government district of Lancashire, England. The population of the civil parish at the 2011 census was 6,674. History The parish was part of Preston Rural District throughou ...

site in

Lancashire Lancashire ( , ; abbreviated Lancs) is the name of a historic county, ceremonial county, and non-metropolitan county in North West England. The boundaries of these three areas differ significantly. The non-metropolitan county of Lancashi ...

, ''Albion Automotive Ltd w. Walker and others'', that a contractual term entitling employees to an enhanced redundancy payment could be implied into the employees'

contracts of employment An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old m ...

based on the employer's custom and practice.Consilio
Enhanced Redundancy Payments
published 16 December 2002, archived version accessed 8 November 2020 However, in a different 2002 decision in the

Employment Appeal Tribunal The Employment Appeal Tribunal is a tribunal in England and Wales and Scotland, and is a superior court of record. Its primary role is to hear appeals from Employment Tribunals in England, Scotland and Wales. It also hears appeals from decisions ...

, ''Warman International v Wilson'', Mr Wilson's claim of being entitled to an enhanced redundancy payment, supported by the Employment Tribunal meeting in Leeds in 2000, was overturned because previous enhanced levels of redundancy payment had on each occasion been made on a case-by-case decision and the employer, when making comparator payments to other staff made redundant, had specifically asserted that enhanced payments for some staff created no precedent on which other staff could subsequently rely.United Kingdom Employment Appeal Tribunal
Warman International Ltd v. Wilson
UKEAT 1383_00_0703, published 7 March 2002, accessed 14 March 2021

References

{{Reflist English civil law Termination of employment Employment compensation United Kingdom labour law