Yes! If you employ anyone, be it a nanny, receptionist, or salesperson means that you have responsibilities under employment law.
As is usual in law, ignorance is not a defense 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 £700 for every completed year’s service. You will have to pay them their notice period.
In addition, you will have to follow a fair and reasonable consultation process. This needs to be at least 3 weeks long.
Example redundancy pay:
Sarah has worked for you for 5 years. Her notice period is one week for every completed year of service. Her weekly pay is £800. 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 £800 notice pay (subject to tax and NI) and 5 x £700 redundancy pay (week’s pay capped at £700, paid gross). We have a more in-depth guide on this, which you can view here.
If you have any other questions about redundancy, please visit our redundancy page.
If you want any help with employment contracts, notice periods, and any employment or HR issues, Gap HR are here to help.
Give us a call on 01491 598 600 or drop us a line at cw@gaphr.co.uk and we can discuss.
