Has there been a dismissal?

Only employees dismissed wholly or mainly because of redundancy are entitled to a redundancy payment.

Section 136(1) of the ERA 96 sets out the circumstances when there will be a dismissal for the purposes of a redundancy payment. There will be a dismissal 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.