Redundancy

Question 1

legislation outlining the selection process for redundancy

Answer 1

ERA 1996

Question 2

the redundancy was unfair as the employer limited the size of the pool to one individual and this was not held to be reasonable in the circumstances

Answer 2

Capita Hartshead v Byard

Question 3

duty to use a fair and objective way to select persons for redundancy - essential to show the basis of the selection process and how it was applied in practice

Answer 3

Cox v Wildt Mellor Bromley Ltd

Question 4

the criteria used for redundancy selection should be capable of being objectively checked against matters such as attendance record, efficiency, staff appraisal, qualifications, experience and any disciplinary action taken against the employee

Answer 4

Williams v Compair Maxam

Question 5

“last in, first out” - in this case it was held that seniority should be considered in redundancy, if it is not, the redundancy may be considered as unfair dismissal

Answer 5

Farthing v Midland House Stores

Question 6

a company may be able to justify deciding to keep a less senior manager if they are more suitable for future tasks, so long as this is not the only reason for selection for redundancy

Answer 6

Hobson v Park Brothers

Question 7

if it is proved that the selection process was not fair, the employee can claim a basic award and possibly a compensatory award under

Answer 7

s162 and s123 ERA 1996

Question 8

the amount of basic award will be reduced by any redundancy payment made by the employer or ordered by the ET

Answer 8

s122 ERA 1996

Question 9

compensatory damages for unfair dismissal are intended to cover actual loss only

Answer 9

Langley v Burlo

Question 10

redundancy under this section can occur due to:

• close of business
• closure of the workplace
• change in requirements of the business

Answer 10

s139 ERA 1996

Question 11

the employer is required to consult the authorised reps of the trade union or other elected reps about the redundancy

Answer 11

s188-194 TULR(C) A 1992

Question 12

definition for redundancy

Answer 12

s195 TULR(C) A 1992

Question 13

those being consulted have reasonable opportuinty to understand the subject matter of the consultation, express their views and the other party must “genuinely” consider their options.

Answer 13

British Coal Corp and Secretary of State for Trade and Industry, ex pate Price and Others

Question 14

consultation is required even where the employer company is in administration, however, a lack of consultation will be acceptable in “special circumstances” such as a “sudden” insolvency of a business rather than an anticipated insolvency

Answer 14

Clarks of Hove v Bakers Union

Question 15

where an employer breaches the duty to consult, a tribunal may make a protective award

Answer 15

s188 TULR(C) A 1992

Question 16

there will not be a dismissal where, before the existing contract of employment comes to an end the employee is offered re-engagement or alternative work by the employer, to commence no later than 4 weeks after the termination of the original contract

Answer 16

s138 ERA 1996

Question 17

reengagement occurs where the employee is offered a renewal of their contract on terms which are the same, in particular as to the capacity in which employed and the place of employment

Answer 17

Briggs v ICI

Question 18

where the employee is offered a renewal of their contract on terms which are the same, the employee looses their right to redundancy pay as there is no redundancy

Answer 18

s141(1) ERA 1996

Question 19

if either the employer/ee terminates the new contract within the trial period employment is deemed to end with the termination of the original contract and for the reasons for which the contract was terminated

Answer 19

s138 ERA 1996

Question 20

if the employee has unreasonably terminated a new contract on different terms which was suitable for them within the trial period, they will not be entitled to a redundancy payment

Answer 20

s141(1) ERA 1996

Question 21

the employee must be given sufficient time to consider the offer and the employment must be substantially equivalent; not only in the terms and conditions of the contract but also the status of the employee

Answer 21

Taylor v Kent County Council