Redundancy Payments Act 1967

Implied or constructive termination of contract.

21

21. (1) Where, in accordance with any enactment or rule of law, any act on the part of an employer or any event affecting an employer (including, in the case of an individual, his death) operates so as to terminate a contract under which an employee is employed by him, that act or event shall for the purposes of this Act be treated as a termination of the contract by the employer, if apart from this subsection, it would not constitute a termination of the contract by him.

(2) Where—

( a) subsection (1) applies,

( b) the employee’s contract of employment is not renewed, and

( c) he is not re-engaged under a new contract, as provided by section 9 (2),

he shall for the purposes of this Act be taken to be dismissed by reason of redundancy if the circumstances in which the contract is not renewed and he is not re-engaged (as provided by the said section 9 (2)) are wholly or mainly attributable to a fact specified in F50 [ section 7 (2) ].

(3) For the purposes of subsection (2), section 7 (2) ( a), in so far as it relates to the employer ceasing or intending to cease to carry on the business, shall be construed as if the reference to the employer included a reference to any person to whom, in consequence of the act or event in question, power to dispose of the business has passed.

(4) In this section reference to section 9 (2) includes reference to that section as applied by section 20 (2).