Redundancy in United Kingdom law

Redundancy in United Kingdom law concerns the rights of employees if they are dismissed for economic reasons in UK labour law.

Definition of redundancy

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

(b) the fact that the requirements of that business—

(i) for employees to carry out work of a particular kind, or

(ii) for employees to carry out work of a particular kind in the place where the employee was employed by the employer,
have ceased or diminished or are expected to cease or diminish.

Diminishing of work

While the first case envisages situations where an employer simply closes his business, the second scenario has been caused trouble in its interpretation. Safeway Stores Plc v Burrell Church v West Lancashire NHS Trust

The function of the employee

'The function of the employee Johnson v Nottinghamshire Combined Police Authority Murphy v Epsom College

The place of work

Geographical test now favoured, Bass Leisure Ltd v Thomas, best of both worlds for the employer potentially, though in that case the EAT made clear that any use of mobility clauses must be subject to the employee's situation

Redundancy procedure

Bessenden Properties Ltd v Corness establishes the main principles on fairness of procedure, with Williams v Compair Maxam Ltd affirming it.

Consultation

Huddersfield Parcels Ltd v Sykes on double consultation (Dyke v Hereford and Worcester County Council affirming) Trade Union and Labour Relations (Consolidation) Act 1992, Section 188 special circumstances defence

Selection criteria

British Aerospace Plc v Green - FDR Ltd v Holloway - on discovery of how criteria were applied Clarke v Eley Kynoch Ltd on discrimination in criteria on gender

Redundancy cases

ERA 1996 ss 98 and 135-181 and TULRCA 1992 s 195

Lesney Products & Co v Nolan [1976] EWCA Civ 8

North Riding Garages v Butterwick [1967] 2 QB 56

Murphy v Epsom College [1984] EWCA Civ 12

Safeway Stores plc v Burrell [1997] ICR 523

Murray v Foyle Meats Ltd [1999] UKHL 30

High Table Ltd v Horst [1997] EWCA Civ 2000

Hollister v National Farmers’ Union [1979] ICR 542

Richmond Precision Engineering Ltd v Pearce [1985] IRLR 179

Catamaran Cruisers Ltd v Williams [1994] IRLR 384

Williams v Compair Maxam Ltd [1982] ICR 156 (EAT)

British Aerospace plc v Green [1995] EWCA Civ 26

Rolls Royce plc v Unite the Union [2009] EWCA Civ 387

ERA 1996 s 141

Thomas Wragg & Sons Ltd v Wood [1976] ICR 313

Thomas & Betts Manufacturing Ltd v Harding [1980] IRLR 255

Optical Express Ltd v Williams [2007] IRLR 936 (EAT)

UK labour law