Employment Protection (Consolidation) Act 1978

81 General provisions as to right to redundancy payment. E+W+S

(1) Where an employee who has been continuously employed for the requisite period—

(a) is dismissed by his employer by reason of redundancy, or

(b) is laid off or kept on short-time to the extent specified in subsection (1) of section 88 and complies with the requirements of that section,

then, subject to the following provisions of this Act, the employer shall be liable to pay to him a sum (in this Act referred to as a “redundancy payment”) calculated in accordance with Schedules 4, 13 and 14.

(2) For the purposes of this Act an employee who is dismissed shall be taken to be dismissed by reason of redundancy if the dismissal is attributable wholly or mainly to—

(a) the fact that his employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased, or intends to cease, to carry on that business in the place where the employee was so employed, or

(b) the fact that the requirements of that business for employees to carry out work of a particular kind, or for employees to carry out work of a particular kind in the place where he was so employed, have ceased or diminished or are expected to cease or diminish.

For the purposes of this subsection, the business of the employers together with the business or businesses of his associated employers shall be treated as one unless either of the conditions specified in this subsection would be satisfied without so treating those businesses.

[F1 (2A) For the purposes of subsection (2) the activities carried on by a local education authority with respect to the schools maintained by it and the activities carried on by the governors of those schools shall be treated as one business unless either of the conditions specified in subsection (2) would be satisfied without so treating them.]

(3) In subsection (2), “cease” means cease either permanently or temporarily and from whatsoever cause, and “diminish" has a corresponding meaning.

(4) For the purposes of subsection (1), the requisite period is the period of two years ending with the relevant date, F2

Textual Amendments

F1 S. 81(2A) inserted by Employment Act 1982 (c. 46, SIF 43:5), Sch. 3 para. 2(1) with saving in S.I. 1982/1656, Sch. 2

F2 Words repealed with saving by Employment Act 1982 (c. 46, SIF 43:5), s. 20, Sch. 2, para. 6(2), Sch. 4

Modifications etc. (not altering text)

C1 S. 81 excluded by S.I. 1980/1052, art. 3; modified by S.I. 1983/1160, art. 3, Sch. 2 para. 1

C2 S. 81 excluded by Dock Work Act 1989 (c. 13, SIF 43:1), s. 5(1)(2)

C3 S. 81 modified (13.1.1994) by S.I. 1993/3167, art. 3, Sch. 2 para.1

C4 S. 81(4) modified by Local Government Act 1985 (c. 51, SIF 81:1), s. 59(2) and Education Reform Act 1988 (c. 40, SIF 41:1), ss. 178(2)(b), 231(7), 235(6)

S. 81(4) modified (3.4.1995) by 1994 c. 19, s. 44(4) (with ss. 54(5)(7), 55(5), Sch. 17 paras. 22(1), 23(2)); S.I. 1995/852, art. 7, Sch. 3