When does a redundancy situation arise?
Last updated:5.1 According to the law, a redundancy situation arises in the following instances:
- the fact that the employer has ceased or intends to cease -
(a) to carry on the business for the purposes of which the employee was employed; or
(b) to carry on that business in the place where the employee was so employed; or
- the fact that the requirements of that business -
- for employees to carry out work of a particular kind; or
- 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. This may include the non-renewal of a temporary contract.
A job change resulting from reorganisation, restructuring or a change of duties will only be a redundancy if the above criteria for redundancy are met.