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    PracticeACCAACCA LW — Corporate and Business Law Practice Exam 1Question 13
    Easy2 marksMultiple Choice
    Corporate and Business LawSection ASyllabus CEmployment Law

    ACCA · Question 13 · Corporate and Business Law

    An employee is dismissed because their employer is relocating the business to another city 200 miles away. The employee refuses to move. What is the legal reason for this dismissal?

    Answer options:

    A.

    Gross misconduct

    B.

    Capability

    C.

    Redundancy

    D.

    Some other substantial reason (SOSR)

    How to approach this question

    Apply the statutory definition of redundancy.

    Full Answer

    C.Redundancy✓ Correct
    Under the Employment Rights Act 1996, redundancy occurs if the employer ceases to carry on business in the place where the employee was employed, or if the requirement for employees to carry out work of a particular kind has ceased or diminished.

    Common mistakes

    Thinking redundancy only applies when a company goes bankrupt.
    Question 12All questionsQuestion 14

    Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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