An employee's role is genuinely no longer required because the business has closed the department in which they work. Under employment law based on the English model (as used in the ACCA BT syllabus), what is the reason for this dismissal?

Correct answer: C) Redundancy

Explanation

Redundancy occurs when the employer ceases the business, or the business in the place where the employee works, or when the need for employees to carry out work of a particular kind has ceased or diminished. Closing a department is a classic redundancy situation. Misconduct relates to the employee's behaviour and capability to their skill or health, while constructive dismissal is not a reason for dismissal at all: it arises when an employee resigns because of the employer's fundamental breach of contract.