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), ERA 96 says 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 to dismissals associated with transfers under the Transfer of Undertaking (Protection of Employment) Regulations 2006 (TUPE). These are explained in Chapter 12.