Easy2 marksMultiple Choice
Employment lawSection BSyllabus CCorporate and Business Law

ACCA · Question 50 · Employment law

Scenario: 'DeepBlue Aquaculture' employs Marcus as a technician. Marcus has worked there for 3 years. He is dismissed immediately without notice after being caught deliberately tampering with the oxygen sensors in the fish tanks, which is classed as gross misconduct. Sarah, another employee of 1 year, is dismissed because the company is closing its kelp harvesting division.

Question: Can Sarah successfully claim statutory redundancy pay?

Answer options:

A.

Yes, because her division is closing, which is a valid reason for redundancy.

B.

No, because she does not have the required 2 years of continuous service.

C.

Yes, because all dismissed employees are entitled to redundancy pay regardless of tenure.

D.

No, because kelp harvesting is considered seasonal agricultural work.

How to approach this question

Check the employee's length of service against the statutory requirement for redundancy pay.

Full Answer

B.No, because she does not have the required 2 years of continuous service.✓ Correct
Under the Employment Rights Act 1996, an employee must have at least two years of continuous service with their employer to be eligible for statutory redundancy pay. Since Sarah has only worked there for 1 year, she does not qualify.

Common mistakes

Assuming that a valid redundancy situation automatically guarantees a redundancy payment for all affected staff.

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