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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 Collective Redundancies Directive 98/59/EC is an EU Directive concerning the procedures and warnings that any employer is under a duty to its workforce to follow if it finds it necessary to make more than 20 employees redundant over 90 days (or 10 to 30 employees depending on the size of the firm over 30 days if the member state chooses this option).
The Employment Rights Act 1996 regulates this by saying that employees are entitled to a fair reason before being dismissed, based on their capability to do the job, their conduct, whether their position is economically redundant, on grounds of a statute, or some other substantial reason. It is automatically unfair for an employer to dismiss an ...
"Redundancy" is a specific legal term in UK labour law with a definition in section 139 of the Employment Rights Act 1996: [18] see Redundancy in United Kingdom law. When an employer is faced with work of a particular type ceasing or diminishing at a particular location, [19] it may be perceived [by whom?] as obfuscation.
You are not entitled to redundancy if you have simply reached retiring age (s.156). And nothing prevents the employer from making a dismissal for misconduct or capability, as outlined under the fairness provisions for dismissal (s.98). The amount of redundancy is based on a length of service calculation and age.
Severance pay in Luxembourg upon termination of a work contract becomes due after five years' service with a single employer, provided the employee is not entitled to an old-age pension and the termination is due to redundancy, unfair dismissal, or covered in a collective labor agreement. [32]
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 ...
Employees are also entitled to a redundancy payment if their job was no longer economically necessary. [9] If an enterprise is bought or outsourced, the Transfer of Undertakings (Protection of Employment) Regulations 2006 require that employees' terms cannot be worsened without a good economic, technical or organisational reason.