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Thomas
Thomas, Lawyer
Category: UK Law
Satisfied Customers: 6426
Experience:  BA (Hons), PgDip, Practising Solicitor
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I HAVE NO CHOICE BUT TO MAKE A MEMBER OF STAFF REDUNDANT BUT

Customer Question

I HAVE NO CHOICE BUT TO MAKE A MEMBER OF STAFF REDUNDANT BUT I HAVENT SUFFICENT FUNDS WHAT SHALL I DO
Submitted: 4 years ago.
Category: UK Law
Expert:  Thomas replied 4 years ago.

Customer,

 

How long has the employee been working for you? In order to be eligible for a redundancy payment they must have been continuously employed for two years.

 

Have you calculated the redundancy payment that would be due to the employee. If not you can use the calculators on the Department for Business and Skills website:-

http://www.berr.gov.uk/whatwedo/employment/redundancy/index.html

 

If you fail to make the appropriate payment employee will be entitled to refer the matter to an Employment Tribunal, who will certainly find against you.

 

If you, as employer, are insolvent and the redundancy payment remains due the employee may apply to Redundancy Payment Office using Form RP1 for payment out of the National Insurance Fund, if the Redundancy Payment Office are satisfied that the employee is entitled to the payment then they will make the payment out of the fund. They will then have a statutory right to recover the money from you and will be in line with your other creditors.

 

If you have found this information useful please kindly click accept so that I may be rewarded for my effort. It will be gratefully received and you will be free to ask follow-up questions.

 

Kind regards,

 

Tom

Thomas, Lawyer
Category: UK Law
Satisfied Customers: 6426
Experience: BA (Hons), PgDip, Practising Solicitor
Thomas and 2 other UK Law Specialists are ready to help you
Customer: replied 4 years ago.

SHE IS ENTITLED TO £8900 AS SHES BEEN EMPLOYED FOR 20 YEARS 6 MONTHS UNDER ME AND 19.5 PREVIOUS OWNER(BOUGHT EXISTING BUSINESS)

AS I SAID I HAVE NOT GOT THE MONEY TO PAY HER WAGES LET ALONE THE REDUNDANCY

Customer: replied 4 years ago.
PLEASE ANSWER MY PREVIOUS QUESTION
Customer: replied 4 years ago.
PLEASE REPLY TO MY QUESTION
Expert:  Thomas replied 4 years ago.

Mohammed,

 

I do sympathise with your position but if the business is insolvent then the employee will be entitled to make a claim either to an employment tribunal or the Redundancy Payments office.

 

The Employment Rights Act 1996 protects employees in the event of redundancy and there is next to nothing that you can do to get around it.

 

If you bought a company you may have to consider writing to your creditors to see if you can enter into an informal arrangement with them with a timetable for payment. If this cannot be reached you may have to speak with an insolvency practitioner about entering a Company Voluntary Arrangement or administration.

 

If you instructed a solicitor to deal with the purchase of the business then you should check to see that you were made aware of your responsibilities as to redundancy. They should have made you aware of the businesses responsibilities in the event of redundancy.

 

I'm sorry I couldn't bring you better news, but I hope you can agree there is little point in my sugar coating your position for you. I've got go offline shortly, if you have further questions I will be able to reply later.

 

Kind regards,

 

Tom

Customer: replied 4 years ago.
CAN I NOT PAY IN STAGE PAYEMENTS OVER 6 MONTHS
Expert:  Thomas replied 4 years ago.

Mohammed,

 

You can try, but she is entitled to the whole amount and will be entitled to make a claim for the whole amount at an employment tribunal, or through the RPO if you are insolvent.

 

I am sorry, I have to go offline now. You can ask further questions and I will be able to respond later.

 

Kind regards,

 

 

Tom

Expert:  Thomas replied 4 years ago.

Customer,

 

Is there still anything you are unclear about?

 

please feel free to ask follow up questions,

 

Tom

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