Chapter 10 Key facts checklists

Redundancy

Employees are to be regarded as redundant if the employer has ceased or intends to cease carrying on the business for the purposes for which the employees were employed, or in the place where they are employed there has been, or will be, a diminution in the need for 'work of a particular kind'.
The burden of proof is on the employer to show that any offer of alternative employment was suitable and that any refusal by the employee was unreasonable.
A trial period may be invoked to consider offers of alternative employment if there is likely to be a difference in terms and conditions of employment.
The employer should give as much warning as possible of impending redundancies to enable the union and the affected employees to take early steps to consider alternative solutions or possibly find alternative work in the undertaking or elsewhere.
The size of a redundancy payment depends upon the employee's age, length of service, and the amount of a week's pay. Both of the last two variables are subject to a statutory cap.