Full legislation
s.31L
Implied or constructive termination of contract
(1) Where in accordance with any enactment or rule of law— (a) any act on the part of the employer; or (b) any event affecting an employer (including, in the case of an individual, his death), operates so as to terminate a contract under which an employee is employed by him, that act or event shall for the purposes of this Part be treated as a termination of the contract by the employer, if apart from this subsection it would not constitute a termination of the contract by him. (2) Where subsection (1) applies, and the employee’s contract of employment is not renewed, and he is not re-engaged under a new contract, as mentioned in section 31D(2) , he shall for the purposes of this Part be taken to be dismissed by reason of redundancy if the circumstances in which the contract is not renewed and he is not re-engaged as mentioned in section 31D(2) , are wholly or mainly attributable to one or other of the facts specified in section 31B(2) . (3) For the purposes of subsection (2), section 31B(2 )( a) , in so far as it relates to the employer ceasing or intending to cease to carry on the business, shall be construed as if the reference to the employer included a reference to any person to whom, in consequence of the act or event in question, power to dispose of the business has passed. (4) In this section any reference to section 31D(2) includes a reference to section 31D(2) as applied by section 31J(2) . [cf. 1965 c. 62 s. 22 U.K.]