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Contracts and Redundancy
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| Submitted: Mon Jun 19 2006
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Contracts and Redundancy In order to claim a redundancy payment an employee must first establish that he has been dismissed and second that the dismissal is for reasons of redundancy. This will encompass all aspects of the decision, therefore it brings in contractual issues in relation to the dismissal as well as in relation to the definition of redundancy. In Saunders v Earnest A Neale Ltd (1974) the employees conducted a work to rule and eventually the factory closed down. It was held that the dismissals were not for reasons of redundancy but due to the 'work to rule´ which had led to a loss of production which in turn had led to the closure. There is a statutory presumption in s163(2) that if an employee is dismissed and claims a redundancy payment his dismissal is for reasons of redundancy and the employer must rebut the presumption to escape liability at common...
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