Thanks for your question.
The are entitled to receive the statutory notice period (unless a longer one is specified in the contract. If they have been employed for more than 5 years but less than six then you will have to give them 5 weeks notice each.
If you are making them redundant then you will have to pay them their statutory redundancy pay unless you have agreed an alternative method of calculating their redundancy payment in their contract or otherwise by agreement). You will need details of their pay, you can then use the following calculator to work out what they are statutorily entitled to:-
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Thanks very much for your reply. There are no contracts. These two employees have designed and manufactured a product for us and got paid on a monthly basis for it. However we financed these two employees mostly with our other company but cant do so no more. Employees now argue now that 5 weeks is not correct and that they are entitled to 7.5 weeks notice, since they worked for us since 06/04/2004. Letter of redundancy has not been sent out yet as we want it to be correct. Is that correct? I look forward to your reply as we have to send letter out today if possible. Many thanks in advance for your reply. Renata
Thank you for your kind accept.
No, they are not correct. They will only be entitled to a longer notice period if this is incorporated in to their contract (I note you say the have no contract with you, they do but they do not have a written contract).by oral/written agreement or if there is a particular method of calculating notice period that your company uses for all other employees. The notice period is worked out as at the day you give them notice.
Please note that you will have to include their notice period in calculating their length of service for redundancy purposes (they will have worked for six years for you by then).
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