10 - Redundancy Flashcards
What’s redundancy?
When an employee is dismissed because the business ceased, employer has ceased or the requirements of that business for employees to carry out the work have ceased/diminished.
Name an example case of redundancy
Vaux & Associated Breweries V Ward (1968)
Dismissed a 57 year old barmaid and replaced with a younger employee in order to attract new customers.
Claimant tried to sue employer for redundancy pay, but the court held:
There had been no redundancy as there was no change in the particular nature of work being performed i.e. serving drinks!
What’s the award for redundancy’s?
The same as employment.
Example for redundancy calculation
Saima is 42 years old, she has worked for her employer for 21 years and earns £400 per week.
Method (all relate to period of employment with this employer)
0.5 week’s pay for each full year Saima was under 22 years
1 week’s pay for each full year Saima was 22 years up to 41 years
1.5 week’s pay for each full year Saima was over 41 years
NB Saima was 21 years old when her employment began and 42 years old when it ended.
Calculation
0.5 week’s pay (£200) x 1 year = £200
1 week’s pay (£400) x 19 years =£7,600
1.5 week’s pay (£600) x 1 year = £600
TOTAL £ 8,400
What happens when you’re made redundant but the employee is offered a new job?
The court will look at;
Employee’s skills and status (e.g. lower level jobs)
Working conditions (e.g. hours of work)
Requirements of family (e.g. travel requirements)
Change in earnings etc
What’s an example of a case of the employer giving you a new job but taking redundancy
Taylor v Kent County Council (1969)
Mr Taylor was headmaster of a school, which was merged with another in the area.
Mr Taylor lost his job as headmaster for the enlarged school, but was offered a part time teaching role instead on the same salary.
Mr Taylor rejected the offer of new employment and claimed redundancy pay.
Court held:
Mr Taylor was entitled to reject the offer and claim redundancy pay, as the new employment was substantially different, particularly in regard to status!
