Where an employee tenders his or her resignation prior to the announcement of the closure of the business will he or she be entitled to redundancy compensation?

If an employee resigns prior to the issue by the employer of a redundancy notice, as a general rule, his or her employment will terminate by reason of resignation, not redundancy. For the purpose of entitlement to a statutory redundancy payment, s.135(1) of the Employment Rights Act 1996 provides that the employee must have been dismissed by reason of redundancy. While s.136(1)(c) provides that a "dismissal" can include cases of constructive dismissal (ie where the employee terminates his or her contract of employment with or without notice in circumstances such that he or she is entitled to do so by reason of the employer's conduct), it is unlikely that the employee could show that the resignation, before closure of the business was announced, amounted to a constructive dismissal or that it was "by reason of redundancy".