ExpertEasy2 marksMultiple Choice
ACCA · Question 13 · Corporate and Business Law
An employee is dismissed because their employer is relocating the business to another city 200 miles away. The employee refuses to move. What is the legal reason for this dismissal?
An employee is dismissed because their employer is relocating the business to another city 200 miles away. The employee refuses to move. What is the legal reason for this dismissal?
Answer options:
A.
Gross misconduct
B.
Capability
C.
Redundancy
D.
Some other substantial reason (SOSR)
How to approach this question
Apply the statutory definition of redundancy.
Full Answer
C.Redundancy✓ Correct
Under the Employment Rights Act 1996, redundancy occurs if the employer ceases to carry on business in the place where the employee was employed, or if the requirement for employees to carry out work of a particular kind has ceased or diminished.
Common mistakes
Thinking redundancy only applies when a company goes bankrupt.
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