Redundancy (Rights of employees)
Key points The Redundancy Payments Act 1965 (whose provisions have long since been repealed and largely re-enacted in the Employment Rights Act 1996) came into force on 6 December 1965. The two principal objectives of the Act were to require employers to compensate redundant employees for the loss of their livelihoods and to establish a Redundancy Fund from which employers would recoup a percentage (or rebate) of any statutory redundancy payment due and paid to a redundant employee. However, the already (by then) much-mutilated redundancy rebates scheme was abolished when the Employment Act 1989 came into force on 16 January 1990. It should be noted that the purpose of the redundancy payments scheme is to compensate a redundant employee for the loss of his (or her) investment in his job – not, as might be supposed, to provide him with sufficient funds to help him survive a period of unemployment. Accordingly, any employee who has lost his job because of redundancy may legit...