Redundancy is defined in two ways: “The employer has ceased, or intends to cease, to carry on the business, completely or at that location”, or
“The requirements of that business for employees to carry out work of a particular kind, or to carry it out in the place in which they are employed, has ceased or diminished or are expected to cease or diminish”.
Examples of redundancy include:
- Termination of a Fixed Term Contract where all the above conditions are fulfilled.
- An organisation with one or more of its sites closing.
- A reorganisation is undertaken which shows that over staffing exists.
- A downturn in the amount of work available for employees.
Although NICVA don’t provide legal advice we can offer some key information on the statutory requirements when ending a contract due to lack of funding or redundancy. Please find some guidance attached.
When dealing with a redundancy or the ending of a fixed term contract, Organisations should always seek advice to ensure statutory requirements are being met.
The Labour Relations Agency’s Advice on Handling a Redundancy is aimed at employers and can be downloaded from: http://www.lra.org.uk/microsoft_word_-_advice_on_handling_redundancy_2.pdf
Other sources of information:
http://www.lra.org.uk/draft_code_of_practice_on_disciplinary_and_grievance_procedures
http://www.communityni.org/grouppost/law-centre-has-produced-redundancy-toolkit