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Economic, Technical or Organisational Defence

Key Points

  • The economic, technical or organisation (“ETO”) defence is relevant to:
    • Dismissals where the sole or principal reason for the dismissal is the transfer;
    • Agreed variations of contractual terms where the sole or principal reason for the variation is the transfer.
  • There is no statutory definition for the ETO defence but it is apparent from the phrasing that there are two issues that need to be considered namely:
    • Was the reason: economic, or technical or organisational?
    • If so, did this reason entail a change in the workforce? 

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