Reasons for dismissal ― redundancy and retirement

Produced by Tolley in association with

Employment Tax

Guidance

Redundancy is a potentially fair reason for dismissal. Dismissal will be by reason of redundancy where it is wholly or mainly attributable to the fact that either:

•
the employer has ceased or intends to cease to carry on the business for the purposes of which the employee was employed, or to carry on that business in the place where the employee was employed
•
the requirements of that business for employees to carry out work of a particular kind, or for employees to carry out work of a particular kind in the place where the employee was employed, have ceased or diminished or are expected to do so

ERA 1996, ss 98, 139

Redundancy situations

Situations in which the above circumstances arise are generally referred to as ‘genuine redundancy situations’. A genuine redundancy situation arises where an employer’s business closes down in its entirety or at one particular workplace, or where an employer cuts its workforce in a particular area of work by a significant number.

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Hannah Freeman

Barrister at Old Square Chambers , OMB, Employment Tax

Hannah is an experienced employment law specialist advising on all forms of discrimination, maternity and paternity rights, unfair dismissal, contractual disputes, part-time working and TUPE. Hannah acts for claimants and respondents in both the public and private sectors, including the NHS, the police, local authorities, educational institutions, financial services and the hospitality industry, as well as providing training and support to in-house legal and HR teams.

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