Thanks for your question.
Could you please clarify what you mean by "as she is having a financial crisis"? The reason I ask is that although redundancy is one of the potentially fair reasons for dismissal an employee can have a claim for unfair dimissal if they were unfairly selected for redundancy. This is plainly something you want the company must protect itself from by ensuring a fair selection process.
ACAS provides lots of useful infomation for employers who are considering making redundancies (I'm sure you appreciate there is quite a lot of literature on the subject) and I woudl advise familarising yourslf with it before making official action:-
If the employee has been employed with the company for two or more years then they will be entitled to a statutory redundnacy payment, unless the contract of employment (or other agreement) imposes an alternative method of calculating the redundancy payment that they are owed (note this cannot be less than the statutory minimum). You can use the following calculator to work out what the employee would be statutorily entitled to:-
I hope this helps, if so please kindly click accept so that I may be rewarded for my time. It will be gratefully received and you will be free to ask follow up questions.Kind regards,Tom
Thanks for your reply.
Tell me about the employment contract, does it state than she is employed by the company who is not making redundancies but that her role is to be split in working hours between both companies?
Is there anything to suggest that she is employed by the company that is making redundancies other than the fact that she does work for them?
You have to build up a picture of her employment relationhip beng with the company that is not making redundancies (think of all examples - where is her manager based, who does she have to request leave from, sickness, reviews etc). If you can show that the contract of employment is with the company not making redundancies then you are not under any obligation to make her redundant. If she is in financial difficulty then that is, sad to say, her personal problem. If she say the work has become untenable then she can give her notice to terminate employment with you.
If she has a contract with the company that is making redundancies, do you still require her to continue working under that contract? ie. are you or are you not intending to make her redundant from that company?
She has a contract for 20 hours per week for the company making her redundant. We do not require her to continue to work under that contract. We are making her redundant from that company to reduce costs. You should know that although she has had both contracts for months she has signed neither.
It doesn't matter that she has not actually signed the contrac, she still has a contract with the company as an employment can either be in writing, oral or a mixture of both.
If you are making her redundant from that role, then you should calculate her redundancy payment on the basis of her pay from that company.
It's better to engage with her and tell her that you believe she has two contracts of employment, albeit that she received money from just one company, and state that you will pay her redundancy payment from that role but not from the other (if that is what you wish).
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