Employment Rights Act 1996, section 141

Renewal of contract or re-engagement

Part XI Redundancy payments etc.

(1)This section applies where an offer (whether in writing or not) is made to an employee before the end of his employment—

(a)to renew his contract of employment, or

(b)to re-engage him under a new contract of employment,

with renewal or re-engagement to take effect either immediately on, or after an interval of not more than four weeks after, the end of his employment.

(2)Where subsection (3) is satisfied, the employee is not entitled to a redundancy payment if he unreasonably refuses the offer.

(3)This subsection is satisfied where—

(a)the provisions of the contract as renewed, or of the new contract, as to—

(i)the capacity and place in which the employee would be employed, and

(ii)the other terms and conditions of his employment,

would not differ from the corresponding provisions of the previous contract, or

(b)those provisions of the contract as renewed, or of the new contract, would differ from the corresponding provisions of the previous contract but the offer constitutes an offer of suitable employment in relation to the employee.

(4)The employee is not entitled to a redundancy payment if—

(a)his contract of employment is renewed, or he is re-engaged under a new contract of employment, in pursuance of the offer,

(b)the provisions of the contract as renewed or new contract as to the capacity or place in which he is employed or the other terms and conditions of his employment differ (wholly or in part) from the corresponding provisions of the previous contract,

(c)the employment is suitable in relation to him, and

(d)during the trial period he unreasonably terminates the contract, or unreasonably gives notice to terminate it and it is in consequence terminated.

Definitions used in section 141 8

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
employment

(5) In this Act “employment”—

(a)in relation to an employee, means (except for the purposes of section 171) employment under a contract of employment, and

(b)in relation to a worker, means employment under his contract;

Defined in s.230(5) · 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
contract of employment

(2) In this Act “contract of employment” means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.

Defined in s.230(2) · see it in the full Act
renewal

“renewal” includes extension, and any reference to renewing a contract or a fixed term shall be construed accordingly,

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

“week”—

(a)

in Chapter I of this Part means a week ending with Saturday, and

(b)

otherwise, except in sections 27C, 75F, 75H, 80A, 80B , 80EA , 80EF , 80J and 86 and paragraph 11 of Schedule A1 , means, in relation to an employee whose remuneration is calculated weekly by a week ending with a day other than Saturday, a week ending with that other day and, in relation to any other employee, a week ending with Saturday.

Defined in s.235(1) · 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
employed

and “employed” shall be construed accordingly.

Defined in s.230(5) · 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
trial period

and is in this Part referred to as the “trial period”.

Defined in s.138(3) · see it in the full Act

“trial period” shall be construed in accordance with section 138(3).

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

Cases considering section 141 11

Devon Primary Care Trust v Readman

[2013] EWCA Civ 1110 · 6 February 2013Interprets

Interprets the statutory scheme governing renewal or re-engagement before employment ends. The issue was whether the employee unreasonably refused an offer of suitable alternative employment, requiring an employee-specific reasonableness assessment. (see paras [12]-[13]; [30]-[32]) Applies the statutory consequence for an unreasonable refusal of an offer satisfying subsection (3): the employee is not entitled to a redundancy payment. The appeal turned on the correct assessment of unreasonableness. (see paras [12]-[13]; [30]-[32]) Interprets the employee-specific refusal inquiry referred to in the judgment under section 141(2)(b). The court rejected importing the unfair-dismissal reasonable-responses test and required assessment of whether this employee acted reasonably in the particular situation. (see paras [30]-[32]) Confirms that the statutory condition may be satisfied where the renewed or new contract differs from the previous contract but the offer constitutes suitable employment in relation to the employee. The suitability finding was not challenged on appeal. (see paras [12]-[13]) Applies the suitable-employment limb of the statutory condition. The Employment Tribunal found that the hospital modern matron post was suitable alternative employment in relation to the employee, and that finding was not challenged in the appeal. (see paras [9]-[13])

Brash-Hall v Getty Images Ltd

[2006] EWCA Civ 531 · 9 May 2006Limits

The court limited section 141’s effect to statutory redundancy entitlement. It did not resolve the separate questions of contractual pay in lieu of notice or conditional enhanced severance payment (see paras [40]–[42]; [48]). Applies the rule that an employee is not entitled to a statutory redundancy payment where the conditions in subsection (3) are satisfied and the employee unreasonably refuses the offer (see para [40]). Applies the criterion that an offer with different contractual provisions may constitute suitable employment. The refused National Account Manager role therefore excluded a statutory redundancy payment (see paras [41]–[42]).

Mid and South Essex NHS Foundation Trust v Catriona Stevenson & Ors

[2023] EAT 115 · 31 August 2023

Section 141(2) makes entitlement to a redundancy payment depend on whether the employee unreasonably refused the relevant offer. That is the statutory question, assessed in the particular employee’s circumstances rather than by applying an additional test from authority (see paras [22]; [29]-[30]). Section 141(3)(b) requires the offer to constitute suitable employment in relation to the employee. Suitability and unreasonable refusal are separate but potentially interrelated inquiries; the Tribunal’s unchallenged finding of suitability did not itself determine unreasonable refusal (see paras [4]-[6]; [22]-[26]).

1 more judgment, and what each says about section 141, are in the case-law panel in the full Act.