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2 Managerial L. 1 (1967)

handle is hein.journals/ijlm2 and id is 1 raw text is: MORTON SUNDOUR FABRICS LTD. v. SHAW

Lord Parker of Waddington C.J., Widgery J. and O'Conner J.
November 25, 1966
Master and servant - Dismissal - Redundancy - Employee
warned that department closing down and services not
required after closure - Date for closure not fixed -
Offer to find employee alternative employment else-
where - Employee finding other employment before
closure - Notice given to employers to determine
employment - Whether employee entitled to redundancy
payment - Whether dismissed - Redundancy Payments
Act, 1965, (c.62), ss.1,3.
The Redundancy Payments Act, 1965, provides by section 1:
(1) Where ... an employee ... (a) is dismissed by his em-
ployer by reason of redundancy, ... the employer shall be liable
to pay to him a sum (in this Act referred to as a redundancy
payment) ... 
By section 3:
(1) For the purposes of this Part of this Act an employee
shall ... be taken to be dismissed by his employer if, but only
if, - (a) the contract under which he is employed by the employer
is terminated by the employer, whether it is terminated by notice
or without notice ... 
An employee had worked for a company for a number of years
as foreman in their velvet department, and was entitled under the
Contracts of Employment Act, 1963, to 28 days' notice of termina-
tion of his employment. In March, 1966, the company informed
him that the velvet department would have to be closed down at a
date in the near future, but they did not specify the date, and that
efforts would forthwith be made to find him other employment as
his services would not be required by the company after the
closure. Within a few days of being so informed, the employee
obtained other employment and by a letter dated March 24,


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