Employment Rights Act 1996, section 135

The right

Part XI Redundancy payments etc.

(1)An employer shall pay a redundancy payment to any employee of his if the employee—

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

(b)is eligible for a redundancy payment by reason of being laid off or kept on short-time.

(2)Subsection (1) has effect subject to the following provisions of this Part (including, in particular, sections 140 to 144, 149 to 152, 155 to 161 and 164).

Definitions used in section 135 4

employer

(4) In this Act “employer”, in relation to an employee or a worker, means the person by whom the employee or worker is (or, where the employment has ceased, was) employed.

Defined in s.230(4) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
redundancy payment

“redundancy payment” has the meaning given by Part XI,

Defined in s.235(1) · see it in the full Act
employee

(1) In this Act “employee” means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

Defined in s.230(1) · see it in the full Act
dismissed

“dismissal” and “dismissed” shall be construed in accordance with sections 136 to 138,

Defined in s.181(1) · see it in the full Act

Cases considering section 135 14

East London NHS Foundation Trust v O'Connor

[2019] UKEAT 0113_19_2910 · 29 October 2019Interprets

The court treated the requirement for a dismissal by reason of redundancy as the starting point for statutory redundancy pay. The outstanding question whether the December dismissal was by reason of redundancy was remitted to the tribunal. The court relied on section 135(2) to confirm that the basic right to redundancy pay is subject to the following provisions, including the provisions governing dismissal and alternative employment.

Kellogg Brown & Root (UK) Ltd v Fitton; Kellogg Brown & Root (UK) Ltd v Ewer

[2016] UKEAT 0205_16_2111 · 21 November 2016

A statutory redundancy payment was not due because the dismissals were caused by refusal to comply with the relocation instruction, not by redundancy. (see Discussion and Conclusions)

Brown & Root (UK) Ltd v Ewer

[2016] UKEAT 0206_16_2111 · 21 November 2016

A statutory redundancy payment is payable only where dismissal is by reason of redundancy. As the actual reason was refusal to comply with the relocation instruction, the payment awards could not stand. (see paras [45]-[49]; [56])

4 more judgments, and what each says about section 135, are in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Modifications

  1. C172S. 135 modified by SI 2006/246 reg. 7(3)(b) (as substituted (31.1.2014) by The Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014 (S.I. 2014/16), regs. 1(2), 8(1) (with reg. 8(2)))
  2. C173S. 135 modified (E.) (1.11.2017) by The NHS Counter Fraud Authority (Establishment, Constitution, and Staff and Other Transfer Provisions) Order 2017 (S.I. 2017/958), arts. 1(1), 8(12) (with arts. 4(5), 7(2), 8(13)-(15), Sch. 3 para. 6)