CIMA BA4 · Chapter 12 · Question 7 of 10
Under English law, which of the following is the correct definition of redundancy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Dismissal wholly or mainly because the employer ceases business, or the need for employees to do work of a particular kind has ceased or diminished
Explanation
Under section 139 of the Employment Rights Act 1996, redundancy arises where the employer has ceased, or intends to cease, carrying on the business or the business in the place where the employee was employed, or where the need for employees to carry out work of a particular kind has ceased or diminished. Performance and conduct are separate reasons for dismissal.
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