By Edward Benson (auth.)
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Extra resources for A Guide to Redundancy Law
Dissolution of Partnership A change in a partnership was held to terminate the contracts of employees in Brace v. Calder ( 2 QB 253). In Tunstall & another v. Condon & another ( ICR 786), the split of a solicitors' partnership was held to have the effect of terminating the employment contracts. But a minor change, such as when one partner dies or retires, may not do so (Phillips v. Alhambra Palace Co ( 1 QB 59). Winding Up of Company A compulsory winding up by the court has the effect of terminating employment contracts, because the identity of the employer changes.
So a redundancy payment for which the employers were not liable under the statute will not break continuity (Rowan v. Machinery Installations (South Wales) Ltd- [1981) IRLR 122). l976/660). Change of Employer Normally, a period of continuous employment is with the same employer throughout, so that on a change of employer, the old period of continuous employment comes to an end, and a new one with the new employer begins. But there are some exceptions: the first is where a 'trade, business or undertaking is transferred from one person to another' (para.
Bartlett ( ITR 106) and Rowbotham v. Arthur Lees & Sons Ltd ( IRLR 377). Closing Down Business If an employer closes his business, he will usually have given dismissal notice anyway, so the question of constructive dismissal will not arise; but if no dismissal notice is given, closure will amount to a fundamental breach of contract, which the employee will have no option but to accept. So where an employee was off sick at the time his employers closed down the business, he was treated as dismissed at the date of closure, even though no dismissal notice was sent (Glenboig Union Fireclay Ltd v.