Friday, 11 April 2008

Definition of 'Redundant'

The EAT, in Martland v Cooperative Insurance Society, has considered whether a dismissal, when the workforce is immediately offered re-engagement on new terms and conditions of employment, amounts to a 'redundancy' dismissal (entitling the workforce to redundancy payments).

The tribunal found that such dismissals were not redundancy dismissals, but were dismissals for some other substantial reason.

The employees appealed, arguing that they had been dismissed because there was a reduction in the need for employees to do 'work of a particular kind', i.e. work under those terms and conditions.

The EAT upheld the ET's decision, holding that 'work of a particular kind' referred to the generic type of job - in this case, insurance salesmen. The tribunal was entitled to find that the job was still essentially the same, despite the substantial changes to the terms and conditions of employment.

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