Redundancy

[Untrepeneur]

HI, I own a small business and am going to have to lay off one worker, (lack of money) they have been with me for just over a year. I have read some of the ins and outs and know I dont have to pay redundancy, however, does anyone know the correct process to giving the redundancy? Thanks in advance.

[profitxchange]

drop into the ACAS website if you wnat chapter and verse.

[sjbeale]

You don't have to pay redundancy pay as the employee hasn't been with you for two years. The best thing to do is write to the employee calling them to a meeting to discuss dismissal due to redundancy providing the right to be accompanied.

At the meeting discuss the situation with the employee and see if they can make some suggestions to avoid/mitigate the situation (you may get a good suggestion so do listen). If you can not see any alternative then advise you must give contractual notice to terminate the contract with the right to appeal. You must then decide whether the employee will work their notice or be paid in lieu. Accrued holiday pay will also be due. Confirm the meeting in writing.

If the employee appeals you must then find an independent HR consultant to hear this if there are no other directors in your company to do so.

You must follow this procedure otherwise the employee could take you to tribunal for unfair dismissal as they have over one year service.