ACCA · Question 09 · Employment law
'ThreadWorks Ltd', a textile manufacturer, decides to fully automate its weaving process. As a result, the company no longer requires manual loom operators and dismisses ten employees who have worked there for five years.
Under the Employment Rights Act 1996, is this a valid reason for redundancy?
Answer options:
No, because the company is still operating and has not closed down its business.
No, because automation is considered an unfair business practice under employment law.
Yes, because the requirement for employees to carry out work of a particular kind has ceased or diminished.
Yes, but only if the employer is insolvent.
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