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Section 139 of the Employment Rights Act 1996 defines the two situations in which a redundancy may occur: (a) the fact that his employer has ceased or intends to cease— (i) to carry on the business for the purposes of which the employee was employed by him, or (ii) to carry on that business in the place where the employee was so employed, or
"Some other substantial reason" (SOSR), words taken from section 98 of the Employment Rights Act 1996, some other substantial reason of a kind such as to justify the dismissal of an employee holding the position which the employee held [88], is a "statutory catch-all provision", [89] [90] which employers use to justify a potentially fair ...
Redundancy" is an economic dismissal "not related to the individual concerned" (e.g. for poor work or misconduct). [358] In University of Stirling v UCU the Supreme Court held that expiry of fixed term contracts, for 140 University teaching staff, did not count as a reason "related to the individual", and so staff should have been consulted. [359]
The reasons laid out that an employer can dismiss are in s.98(2). Fair reasons to dismiss an employee are if it, (a) relates to the capability or qualifications of the employee for performing work of the kind which he or she was employed by the employer to do, (b) relates to the conduct of the employee, (c) is that the employee was redundant, or
Reasons for leaving include termination (i.e. involuntary turnover), retirement, death, transfers to other sections of the organization, and resignations. [2] Factors external to the organization, such as employees seeking to meet financial needs, work-family balances, economic crises, etc. may also contribute.
The wrong label of 'redundancy' does not affect the point. The second point is whether the reason here was such as to justify the dismissal. Under section 24(2)(a) a reason would be sufficient if it 'related to the capability or qualifications of the employee for performing work of the kind which he was employed by the employer to do.'
A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). A layoff is usually not strictly related to personal performance but instead due to economic cycles or the company's need to restructure itself, the firm itself going out of business, or a change in the function of the employer (for example, a certain ...
The Redundancy Payments Act 1965 (c. 62) was an act of the Parliament of the United Kingdom that introduced into UK labour law the principle that after a qualifying period of work, people would have a right to a severance payment in the event of their jobs becoming economically unnecessary to the employer. The functions of the redundancy ...