CILEx L3 Employment Law 2 — Questions and Answers
Question 1: Which of the following is a potentially fair reason for dismissal under s.98(2) of the Employment Rights Act 1996?
- The employee's pregnancy
- Redundancy (Correct answer)
- The employee's trade union membership
- The employee's whistleblowing activity
Correct answer: Redundancy
Section 98(2) ERA 1996 sets out five potentially fair reasons for dismissal: capability or qualifications, conduct, redundancy, statutory illegality or contravention, and some other substantial reason (SOSR). Redundancy is one of these. Dismissal for pregnancy, trade union membership, or whistleblowing would be automatically unfair regardless of the employer's procedures or the length of service.
Question 2: Under TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006), what happens to employees' contracts when a relevant transfer occurs?
- All employment contracts are terminated
- Employees' contracts automatically transfer to the new employer on the same terms (Correct answer)
- Employees must reapply for their jobs with the new employer
- Only permanent employees' contracts transfer
Correct answer: Employees' contracts automatically transfer to the new employer on the same terms
Under Regulation 4 of TUPE 2006, on a relevant transfer, all employees employed by the transferor immediately before the transfer automatically become employees of the transferee. Their contracts of employment transfer with all existing rights, duties, and liabilities (except criminal liabilities and old-age pensions). Dismissal by reason of the transfer is automatically unfair unless it is for an economic, technical, or organisational reason entailing changes in the workforce.
Question 3: What is the duty to make reasonable adjustments under the Equality Act 2010?
- A duty on employees to adapt to their working conditions
- A duty on employers to take reasonable steps to remove barriers that place disabled workers at a substantial disadvantage (Correct answer)
- A duty on employers to treat all employees identically
- A duty on tribunals to adjust compensation awards
Correct answer: A duty on employers to take reasonable steps to remove barriers that place disabled workers at a substantial disadvantage
Sections 20-22 of the Equality Act 2010 impose a duty on employers to make reasonable adjustments where a provision, criterion or practice, a physical feature of premises, or the absence of an auxiliary aid puts a disabled person at a substantial disadvantage compared to non-disabled persons. What is 'reasonable' depends on factors including cost, practicability, the employer's resources, and the effectiveness of the adjustment.
Question 4: What is the minimum statutory notice period an employer must give to an employee who has been continuously employed for 8 years?
- 1 week
- 4 weeks
- 8 weeks (Correct answer)
- 12 weeks
Correct answer: 8 weeks
Under s.86 of the ERA 1996, after 2 years' continuous employment, the minimum statutory notice is 1 week for each complete year of service, up to a maximum of 12 weeks. For an employee with 8 years' service, the minimum notice is therefore 8 weeks. The first 2 years require only 1 week's notice. Contractual notice periods may be longer but cannot be shorter than the statutory minimum.
Question 5: In what circumstances can an employer lawfully make an employee redundant?
- When the employee has been underperforming
- When the employer's requirement for employees to carry out work of a particular kind has ceased or diminished (Correct answer)
- When the employee refuses to accept new contract terms
- When the employer wants to replace the employee with a cheaper worker
Correct answer: When the employer's requirement for employees to carry out work of a particular kind has ceased or diminished
Redundancy is defined in s.139 ERA 1996 as arising when the employer has ceased or intends to cease carrying on the business, the business has ceased or will cease in the place where the employee works, or the requirements for employees to carry out work of a particular kind have ceased or diminished. The employer must follow a fair procedure including consultation, apply fair selection criteria, and consider suitable alternative employment.
Question 6: What remedies are available to an employment tribunal if it finds that an employee has been unfairly dismissed?
- Only financial compensation
- Reinstatement, re-engagement, or compensation (Correct answer)
- Only reinstatement to the original position
- A formal warning to the employer and no other remedy
Correct answer: Reinstatement, re-engagement, or compensation
Under ss.112-117 ERA 1996, an employment tribunal may order three remedies for unfair dismissal: reinstatement (returning to the same job on the same terms), re-engagement (employment in a comparable or suitable role), or compensation (basic award plus compensatory award). The tribunal must first consider reinstatement, then re-engagement, and only award compensation as a last resort. In practice, compensation is the most commonly awarded remedy as reinstatement orders are rare.
CILEx L3 Employment Law 2
Which of the following is a potentially fair reason for dismissal under s.98(2) of the Employment Rights Act 1996?