Section 214 — Employment Rights Act 1996: Special provisions for redundancy payments.

Special provisions for redundancy payments. 214 1 This section applies where a period of continuous employment has to be determined in relation to an employee for the purposes of the application of section 155 or 162(1).

2 The continuity of a period of employment is broken where—

a a redundancy payment has previously been paid to the employee (whether in respect of dismissal or in respect of lay-off or short-time),

and b the contract of employment under which the employee was employed was renewed (whether by the same or another employer) or the employee was re-engaged under a new contract of employment (whether by the same or another employer).

3 The continuity of a period of employment is also broken where—

a a payment has been made to the employee (whether in respect of the termination of his employment or lay-off or short-time) in accordance with a scheme under section 1 of the Superannuation Act 1972 or arrangements falling within section 177(3),

and b he commenced new, or renewed, employment.

4 The date on which the person’s continuity of employment is broken by virtue of this section—

a if the employment was under a contract of employment, is the date which was the relevant date in relation to the payment mentioned in subsection (2)(a) or (3)(a),

and b if the employment was otherwise than under a contract of employment, is the date which would have been the relevant date in relation to the payment mentioned in subsection (2)(a) or (3)(a) had the employment been under a contract of employment.

5 For the purposes of this section a redundancy payment shall be treated as having been paid if—

a the whole of the payment has been paid to the employee by the employer, b a tribunal has determined liability and found that the employer must pay part (but not all) of the redundancy payment and the employer has paid that part, or c the Secretary of State has paid a sum to the employee in respect of the redundancy payment under section 167.