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Departmental managers picked teams of core staff who could be retained to keep the business viable. They chose on personal preference for what they thought would be good for the company, but the union was not consulted. Other employees were dismissed for redundancy and given money beyond statutory minima. Five workers claimed dismissal was unfair.
In a redundancy situation the employer must consult [73] those in the "pool" identified at risk and carry out a fair selection. The consultation must start when the employer decides [ 74 ] or proposes [ 75 ] redundancy - any delay could entitle the employee to compensation for loss of jobseeking time. [ 76 ]
Polkey v AE Dayton Services Ltd [1987] UKHL 8 is a UK labour law case, concerning unfair dismissal, now governed by the Employment Rights Act 1996.. The phrase 'Polkey deduction' has become a standard concept in UK Employment Tribunals, as a result of this case and later ones, meaning that even if a Tribunal decides a dismissal was unfair, it must separately decide whether the compensatory ...
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
An injunction could be awarded to enforce a contractual disciplinary procedure, [7] but because compensation is usually an adequate remedy for premature termination, an injunction is generally not available to keep a job going, [8] even in a redundancy situation where the selection process has been circumvented. Action for wrongful dismissal ...
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The Court of Appeal applied a "contract test" to the question of redundancy: whether an employee was redundant was to be determined by reference to the terms (explicit or implied) in their employment contract. This, along with the "function test" was subsequently rejected by the House of Lords in Murray v Foyle Meats Ltd. [3
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 ...