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Chapter 4

Redundancy

What is redundancy?

Under s139 ERA 1996, an employee is treated as dismissed by reason of
redundancy if the dismissal is wholly or mainly attributable to the fact that:

 The employer has ceased, or intends to cease, to carry on the business for the
purposes for which or in the place where the employee was employed.

 The requirements of that business for employees to carry out work of a
particular kind or in a particular place have ceased or diminished or are
expected to cease or diminish.

Illustration 9 – Redundancy

European Chefs v Currell

Facts:

A pastry cook was dismissed because the requirement for his speciality (éclairs
and meringues) had ceased. He was replaced by a new pastry cook whose
speciality was the new requirement (continental pastries).

Held:

It was held that the dismissed pastry cook had been dismissed for redundancy
as the need for the particular work he contracted to do had ceased.

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