Redundancy Flow-Chart PDF

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Redundancy

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Figure 4.1 Flowchart: Redundancy payments 1.

Check eligibility (burden of proof on employee) within time limits employee at least 2 years’ continuous employment excluded class? YES NO

2.

Has the employee been dismissed? actual dismissal constructive dismissal — falls within legal test? expiry and non-renewal of fixed-term contract

NO

No redundancy payment claim

YES

NO

3A. Was there a redundancy situation? (ERA 1996, s 139) (at this stage, look at the actual situation rather than at what the contract says) job redundancy – whole business closes down employee redundancy – need for employee to do work of a particular kind ceases or diminishes place of work redundancy – where did employee actually work? 3B. Two-part test for employee redundancy/place of work redundancy Did the redundancy situation cause the dismissal of this employee (consider contract at this point)? YES 4.

Did the employer offer a suitable alternative/old job back? (objective test) conditions of suitability/(cf old and new jobs)/length of trial 4-week statutory trial period YES 5.

Did the employee accept the new job (even if not suitable)? NO

NO 6.

Did the employee unreasonably refuse the offer or unreasonably terminate during the trial period (subjective test) NO

Employee is entitled to redundancy payment

5.

Calculate payment age factor last week’s gross pay (subject to statutory maximum) number of complete years continuous employment

6.

Consider other claims unfair dismissal/wrongful dismissal etc

YES

YES...