Section A

Which of the following is a valid statutory definition of redundancy?

Answer options:

The employee is dismissed for poor performance.

The employer ceases to carry on the business for the purposes of which the employee was employed.

The employee resigns due to a hostile work environment.

The employer fires the employee to hire someone cheaper.

How to approach this question

Identify the legal definition of redundancy.

Full Answer

B.The employer ceases to carry on the business for the purposes of which the employee was employed.✓ Correct

Redundancy occurs when a dismissal is wholly or mainly attributable to the fact that the employer has ceased (or intends to cease) carrying on the business, or the requirements of the business for employees to carry out work of a particular kind have ceased or diminished.

Common mistakes

Confusing redundancy with being fired for performance or conduct.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 5

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