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Do I Have To Give Employees Redundancy Pay?

Written by the-main-gap-account

Yes! If you employ anyone, be it a cleaner, nanny, or sales person means that you have responsibilities under employment law.

As is usual in law, ignorance is not a defence and will not protect you!

You don’t need to pay redundancy to staff who have worked less than two years for you. You will obviously have to pay them their notice period.

You do need to pay redundancy to staff who have worked for you for more than two years. Statutory redundancy pay is currently max £538 for every completed year’s service. You will have to pay them their notice period.

NB Statutory redundancy pay changes every April.

In addition, you will have to follow a fair and reasonable consultation process. This needs to be at least 3 weeks long.

Example

Sarah has worked for you for 5 years. Her notice period is one week for every completed year of service. Her weekly pay is £600. You would start the redundancy consultation process. You would pay her and she would work for those weeks, as usual. Then you would terminate her employment. You would give her 5 weeks x £600 notice pay (subject to tax and NI) and 5 x £538 redundancy pay (week’s pay capped at £538, paid gross).

Filed Under: Redundancy, Redundancy Texts

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• We focus on employment law that deals with difficult employees in companies that do not require an in-house HR Manager.

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Where our clients are:

Mark Ghafoor, KCC Basildon

“Whether it’s a simple question or a more complex query, GAP HR have ensured that we have the most up to date knowledge of current legislation and processes to ensure we can offer the best support to our teams.
It is reassuring to know that expert advice is only a phone call or video conference away!”

Deb Green, Vermatech Pest Control

“We have been using Gap HR for several years now. Carolyne and her team are professional and efficient and we would not hesitate in recommending them for small businesses. It is a great relief to know we are supported by them for our HR advice and paperwork is kept up to date.”

Justin Wilkie, 2Excel Logistics

“I have been working with Carolyne and her team for 6 years now , when I first purchased 2Excel Logistics I found the HR scary as I wanted to do the right thing for my staff , with Gap HR on my side this all seemed easy and we have gone from 9 staff to 28 with no hassle what so ever , thank you to all at Gap HR”

Ashley Lewis, Wallingford Tiles and Bathrooms

“So pleased to be working with Gap HR. They’ve straightened us out in no time. Their pricing is clear and they really know what they are talking about.”

Helen Gordon, Kitecreative

“We are a growing company but do not have facilities in house yet for HR services in house. Gap HR is our go to service for all kinds of advice about HR for our business and we have found them very reliable, communicative and efficient. Would definitely recommend them”

“Carolyne and team continue to provide great support to our business, with quick and accurate responses to help with our various HR needs.”

“Gap HR have been at our side for a number of years now and are a great help in dealing with our HR needs”

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