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LPC Law Notes Employment Law Notes

Redundancy Payments I Tutorial Notes

Updated Redundancy Payments I Tutorial Notes

Employment Law Notes

Employment Law

Approximately 388 pages

A collection of the best LPC Employment notes the director of Oxbridge Notes (a former Oxford law graduate) could find in 2014 after combing through seventeen LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor". In short these are what we believe to be the strongest set of Employment Law notes available in the UK this year. This collection of notes is full...

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The following is a more accessible plain text extract of the PDF sample above, taken from our Employment Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

INTRO

  • Where an employer’s need for an employee ceases or diminishes

  • The redundancy payment is a reward for past services, the amount of which is prescribed by statute

  • Payment should be made automatically at the end of the contract, but where employer fails to do this; employee may pursue claim in Employment Tribunal
ELIGIBILITY

  • Statutory claim; not all employees eligible

  • Need to pass 4 tests:

  • EMPLOYEE

    • Not self employed

  • DISMISSAL

    • Contained in 136(1) ERA 1996:

  • REQUISITE PERIOD

    • 2 years of continuous employment at the date of the termination of the employment

  • EXCLUDED CLASS

    • Domestic servant for example, or a mariner

    • Only affect a minority of cases
DISMISSAL BY REASON OF REDUNDANCY

  • Definition contained in – and occurs in three situations

  • JOB REDUNDANCY

    • Easy to recognise as business ceases to operate; those eligible are therefore automatically entitled to a redundancy payment

  • POW REDUNDANCY

    • Also relatively straightforward; closure of a branch for example, business as a whole continues but one branch closes…

    • In such a situation there is still a possibility that an employee may not be entitled to redundancy payment; this is when employee has a mobility clause…

    • Mobility clause allows employer to change employee’s POW; employer may tell those workers with mobility clauses in their contracts that they have to move branch… a refusal to move by the employee will not trigger redundancy… the dismissal will be due to the employee’s conduct rather than due to dismissal

  • EMPLOYEE REDUNDANCY

    • Where employer does not need as many employees; may be due to rationalisation or because employees have been replaced with machines

  • It is usual for the employer simply to pay the money on termination of the contract… however:
ACTIVITY 1 – DISMISSAL BY REASON OF REDUNDANCY
OFFERS OF RE-EMPLOYMENT

  • Employer may not actually want employees to leave; may want those from the redundant branch to move to another branch for example

  • Employers who make re-employment offers MAY NOT have to make redundancy payments IF the employees refuse the offer; but there are conditions…

  • The offer of re-employment must comply with 141 ERA 1996:

  • In the vast majority of cases the offer of re-employment will be an offer of an alternative job that differs in some respect, i.e. different branch or different job in the same organisation; so it is possible that the employee may choose to reject the offer

  • Arguments will therefore revolve around suitability of employment and reasonableness of refusal; how does a tribunal decide?

  • SUITABILITY OF EMPLOYMENT

    • Compare such things as hours of work, rate of pay, duties, seniority, availability of training

    • If, when taken as a whole, the new job is equivalent to the old job, it is a suitable offer of employment

  • REASONABLENESS

    • Given employee situation the refusal was reasonable… disruption the change would cause to the employee and his family if, for example, the employee had to move for the new job; education of employees children; impact of new shift pattern on family commitments; whether new place of work is accessible for employee

  • FINAL POINT

    • Employees entitled to a trial period to help them decide whether the new job is suitable – 138 ERA 1996 – four week trial period from the date they start work under the new contract… if at the end, or during, the period an employee decides that the job is not...

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