A reduction in work leading to a reduction in hours worked by employees is a redundancy situation.
Overturning a previous EAT decision, the EAT has ruled that there does not need to be a reduction in the number of employees if the hours they work has decreased, ie there is a reduction in full-time equivalent employees. An employee who refuses to accept reduced hours and is dismissed may therefore be entitled to statutory redundancy pay. (Packman t/a Packman Lucas Associates v Fauchon, EAT)
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