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When does a redundancy situation arise?

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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.

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