Under what condition can an employee be entitled to redundancy payment?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

An employee is entitled to redundancy payment when they have continuous employment of at least two years. This requirement is grounded in employment law, specifically under the Employment Rights Act 1996, which stipulates that employees must have a minimum period of continuous service to qualify for redundancy payments. The two-year period ensures that employees have established a significant attachment to their job and the employer, reflecting their contributions and the potential impact of job loss.

Other circumstances, such as being employed for less than one year, being on a probation period, or working part-time, do not satisfy the eligibility criteria. Employees with less than two years of continuous service are not entitled to redundancy payments regardless of their employment status or hours worked, as the law is designed to balance the need for job security with the employer's ability to manage their workforce. Therefore, the requirement of two years of continuous employment serves as a key threshold for entitlement to redundancy payments.

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