Redundancy obligations

[Piff]

I have an employee (20 yr old) and work for him is running out. it is regrettable to be considering redundancy this side of Christmas but I can't afford to pay him to do nothing.
It is likely that I will re-employ him in the future, maybe 3 to 6 months time (if he is available/willing and I generate some work).
His current employment started in Nov 2010 until June 2011 part time, then full time from Jul 2011 to date.
Employment conditions are a bit informal.

What are my obligations for notice periods/redundancy pay. If there is any "grey" area I would err on his side as I may wish to re-employ him in the future.

 

[Dieselman]

You can calculate the statutory pay here.

https://www.gov.uk/calculate-employee-redundancy-pay

 

[John]

He should get 1/2 a week of salary for every year of service.

Notice will be statutory which is 1 week per year of service IIRC.

Statutory takes precedence as a minimum - probably best thing to do is keep in communication and maybe be a bit more generous with the reundancy payment?

 

[Piff]

Does part time/full time make any difference?
May wish to present it to him with full facts

 

[grober]

It may help cushion the blow if you explain that you are perfectly satisfied with his work but that you have to let him go for financial reasons- this would perhaps be less of a blow to his self esteem. It may also help to let him know there is a chance he may be re-employed should there be an upturn in the business- but don't make any commitments you may not be able to keep. Honest communication on both sides is usually best in these circumstances and should not be avoided despite the situation being difficult .

 

[SL300-24]

Get some proper advice, redundancy and the reasons for it can be a nightmare for employers

 

[Swozza]

When in Nov as Redundancy only applies to Staff who have been employed 2 years plus.

 

[Rob77]

When in Nov as Redundancy only applies to Staff who have been employed 2 years plus.

That's what I thought too. So, his rights and entitlements should be set out in his contract of employment.

 

[Red C220]

Part time/full time does also make a difference.

Get some proper advice. Your accountant should be able to advise you.

 

[Dryce]

his rights and entitlements should be set out in his contract of employment.

Small businesses often employ based on no more than a brief offer letter setting out some basics - which is accepted.

The contract of employment as such is implicit with a few parameters.

Shock horror you might think - the employee is being left unprotected.

Actually the opposite is true. The purpose of a contract of employment is to usually protect and strengthen the position of the *employer*.

 

[John]

Does part time/full time make any difference?
May wish to present it to him with full facts

It's what they are doing now which is of importance...

 

[Piff]

When in Nov as Redundancy only applies to Staff who have been employed 2 years plus.

Week commencing 8/11/2010 - 20 hours

 

[Piff]

That's what I thought too. So, his rights and entitlements should be set out in his contract of employment.

No written contract - taken on while he was at college part time.
All a bit informal. Only gets paid the hours he actually works.
He finished college July 2011 & increased hours to about 40 per week.

 

[markjay]

If you are considering re-employing him, aren't you in fact laying him off instead of making him redundant?

 

[John]

Depends what you term 'laying off'.

I still see that as redundancy as there is no role for him, for whatever reason e.g. no work, so his position is redundant...

If you make him redundant, he has 3 months to challenge the decision if he believes you are unfairly advertising the post - but as you would most likely offer him a job again - I can't see it being an issue?

 

[Dieselman]

I would have thought "laying off" referred to a short break while there was reason such as poor weather or a gap between contracts.

This situation seems more like a lack of work so the position is redundant.

 

[Piff]

I would have thought "laying off" referred to a short break while there was reason such as poor weather or a gap between contracts.

This situation seems more like a lack of work so the position is redundant.

Laying off is quite common in building trade as you have described.

In my situation, I have been working on my own house for the last year or so and continuing to employ him to assist.

There was always going to be a time when the house is complete, I move in & sell current abode. Proceeds from current abode re-finances business and I look for a new project.

Currently getting to last few weeks of work, which requires skills he doesn't have and I'm not prepared to continue to employ him to watch me work!

Locating the next project & getting it in a position for employee to be of any assistance could easily be 3 months.

So I think redundancy is appropriate.

Have advised him today that we are running out of work he can help with and running out of funds to pay his wages.
Initial reaction was ok, but we will see what tomorrow brings.