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When that happens, because the employer (i.e. the original company) remains the same legal entity, all contractual obligations stay the same. The directive and regulations apply to other forms of transfer, through the sale of physical assets and leases. The regulations also apply in some cases for work transferred to contractors.
The consultation must start when the employer decides [74] or proposes [75] redundancy - any delay could entitle the employee to compensation for loss of jobseeking time. [76] Depending on size of firm and how many redundancies are proposed, it may need to include ways of avoiding redundancies, saving jobs and mitigating effects of redundancy.
In 2002, the Court of Appeal ruled in a case brought by staff employed at Albion's Farington site in Lancashire, Albion Automotive Ltd w. Walker and others, [1] that a contractual term entitling employees to an enhanced redundancy payment could be implied into the employees' contracts of employment based on the employer's custom and practice.
The qualifying period for redundancy is having worked for two years with the same employer (s.155). You are not entitled to redundancy if you have simply reached retiring age (s.156). And nothing prevents the employer from making a dismissal for misconduct or capability, as outlined under the fairness provisions for dismissal (s.98).
Severance pay in Luxembourg upon termination of a work contract becomes due after five years' service with a single employer, provided the employee is not entitled to an old-age pension and the termination is due to redundancy, unfair dismissal, or covered in a collective labor agreement. [32]
An "employee" is entitled to all types of rights that a worker has, but in addition the rights to reasonable notice before a fair dismissal and redundancy, protection in the event of an employer's insolvency or sale of the business, a statement of the employment contract, and rights to take maternity leave or time off for child care.
The redundancy compensation payment for employees depends on the length of time an employee has worked for an employer which excludes unpaid leave. If an employer can't afford the redundancy payment they are supposed to give their employee, once making them redundant, or they find their employee another job that is suitable for the employee.
Interviewed, John Bowers of Brasenose College stated that, while redundancy law operated under UK statute, the necessity of a consultation period was an unaltered remnant of European law. Conversely, however, Andrea London of Winckworth Sherwood , described Brexit as a " red herring ", and that the spirit of the requirement to consult went back ...