EIM13800 - Termination payments and benefits: meaning of redundancy: statutory definition

Section 139 Employment Rights Act 1996

Apply the definition of redundancy given by Section 139 Employment Rights Act 1996:

"... an employee who is dismissed shall be taken to be dismissed by reason of redundancy if the dismissal is attributable wholly or mainly to:

  • the fact that his employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased, or intends to cease, to carry on that business in the place where the employee was employed or
  • the fact that 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 he was so employed, have ceased or diminished or are expected to cease or diminish".

The definition is applied equally whether the payments are statutory (see EIM13760) or non- statutory (see EIM13775).

See EIM13802 for more detail.