Fairhaven Accountants closes its Leeds office and moves all work to Manchester, 45 miles away. The Leeds employees' contracts have no mobility clause, and their jobs at Leeds come to an end. Is this a redundancy situation?

Correct answer: B) Yes, because the employer has ceased to carry on business in the place where the employees were employed

Explanation

Under s139 Employment Rights Act 1996, redundancy includes the employer ceasing, or intending to cease, to carry on business in the place where the employee was employed. The business continuing elsewhere does not prevent a redundancy situation where the employees had no obligation to relocate. An offer of suitable alternative work in Manchester may affect entitlement to a redundancy payment, but the firm's profitability is irrelevant.