Has there been a dismissal?

Only employees dismissed after two years’ service wholly or mainly because of redundancy qualify for a statutory redundancy payment. Section 136(1) of the ERA 96 says that there will be a dismissal for the purposes of a redundancy payment when:

• the employment contract is terminated, with or without notice;

• a contract for a fixed-term is not renewed;

• the employer’s actions leave the employee with no alternative but to resign (constructive dismissal); or

• the employee resigns while already under notice of a redundancy dismissal.

Special rules apply in the case of dismissals associated with transfers under the Transfer of Undertaking (Protection of Employment) Regulations 2006 (TUPE). These are explained on pages 403-404.