Redundancy - Unite the Union
Redundancy - Unite the Union
Redundancy - Unite the Union
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n REdUNdaNCy pay<br />
• Pre-conditions for payment<br />
Under Part XI of <strong>the</strong> ERA, employees dismissed for redundancy may be entitled<br />
to a statutory redundancy payment. The conditions that need fulfilling for a<br />
person to be entitled to a statutory redundancy payment are:<br />
• that <strong>the</strong>y were an employee; only ‘employees’ are entitled to claim a statutory<br />
redundancy payment which means that self-employed people and those<br />
engaged under a contract for services are not eligible to make a claim.<br />
Ultimately it will be for a tribunal to decide whe<strong>the</strong>r a person is an ‘employee’.<br />
Among <strong>the</strong> matters which <strong>the</strong> tribunal will take into account are a person’s tax<br />
schedule, how <strong>the</strong>y are paid, whe<strong>the</strong>r <strong>the</strong>y provide <strong>the</strong>ir own equipment and<br />
who controls or directs <strong>the</strong>ir work. Formerly, different rules of continuity<br />
applied to full-time and part-time employees. A challenge to <strong>the</strong> rules of<br />
continuity as <strong>the</strong>y affected part-timers, on <strong>the</strong> basis that <strong>the</strong>y were<br />
discriminatory and contrary to European law was successful in R v Secretary of<br />
State for Employment, ex parte EOC [1994]. As a result, <strong>the</strong> Employment<br />
Protection (Part-Time Employees) Regulations 1995 were introduced to amend<br />
<strong>the</strong> EPCA so that all part-time employment counts towards continuity in <strong>the</strong><br />
same manner as full-time employment.<br />
• that <strong>the</strong>y had been continuously employed for a period of two years (although<br />
<strong>the</strong> requirement for a qualifying period of employment may be open to<br />
challenge on <strong>the</strong> basis that it discriminates against women and contravenes<br />
European law);<br />
• that <strong>the</strong>y were dismissed; and<br />
• that <strong>the</strong> dismissaI was by reason of redundancy.<br />
• Exclusions from <strong>the</strong> right to payment<br />
The following groups of people do not qualify for <strong>the</strong> right to a statutory<br />
redundancy payment:<br />
• merchant seamen, former registered dock workers engaged in dock work<br />
(covered by o<strong>the</strong>r arrangements) or share fishermen;<br />
• crown servants, members of <strong>the</strong> armed forces or police services;<br />
• apprentices who are not employees at <strong>the</strong> end of <strong>the</strong>ir training;<br />
• a domestic servant who is a member of <strong>the</strong> employer’s immediate family;<br />
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