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The Employment Rights Act 1996 regulates this by saying that employees are entitled to a fair reason before being dismissed, based on their capability to do the job, their conduct, whether their position is economically redundant, on grounds of a statute, or some other substantial reason. It is automatically unfair for an employer to dismiss an ...
Except when ACAS have been involved and arranged a COT3 settlement, COT3 being the name of the form used, [5] compromise agreements are the only means whereby an employee can waive statutory claims such as unfair dismissal, discrimination or entitlements to a redundancy payment. [6]
These obligations of protection are placed on the transferring companies both before, during and after the transfer. The obligations are relieved if there is an "economic, technical or organisational" reason for the cessation of employment (Regulation 7(1)(b)), or alteration to employees terms and conditions (Regulation 4(4)(b)).
The reasons laid out that an employer can dismiss are in s.98(2). Fair reasons to dismiss an employee are if it, (a) relates to the capability or qualifications of the employee for performing work of the kind which he or she was employed by the employer to do, (b) relates to the conduct of the employee, (c) is that the employee was redundant, or
Voluntary redundancy is when an employer asks an employee to agree to terminate their contract, in return for a financial incentive.
Section 139 of the Employment Rights Act 1996 defines the two situations in which a redundancy may occur: (a) the fact that his employer has ceased or intends to cease— (i) to carry on the business for the purposes of which the employee was employed by him, or (ii) to carry on that business in the place where the employee was so employed, or
Redundancy" is an economic dismissal "not related to the individual concerned" (e.g. for poor work or misconduct). [358] In University of Stirling v UCU the Supreme Court held that expiry of fixed term contracts, for 140 University teaching staff, did not count as a reason "related to the individual", and so staff should have been consulted. [359]
A less severe form of involuntary termination is often referred to as a layoff (also redundancy or being made redundant in British English). A layoff is usually not strictly related to personal performance but instead due to economic cycles or the company's need to restructure itself, the firm itself going out of business, or a change in the function of the employer (for example, a certain ...