Lease notice period and staff redundancy

[Colemans]

I have shop lease that is subject to 1 months notice.I have been given notice and will have to cease trading.
I also have 1 member of staff, who has worked for me for a number of years, who I have had to give 1 months notice to.
I am required to pay redundancy due to the number of years worked but also 1 weeks pay for every year worked in lieu of notice. As this would work out to more than the period of notice my shop has been given, how do I stand legally?

 

[Newchodge]

I have shop lease that is subject to 1 months notice.I have been given notice and will have to cease trading.
I also have 1 member of staff, who has worked for me for a number of years, who I have had to give 1 months notice to.
I am required to pay redundancy due to the number of years worked but also 1 weeks pay for every year worked in lieu of notice. As this would work out to more than the period of notice my shop has been given, how do I stand legally?

By law an employer must give an employee at least 1 weeks' paid notice for every complete year worked. If the employer cannot offer any work then the employee does not have to do any work. The employee must also be paid for any holiday accrued but unused. These payments are subject to nor5mal tax and insurance.

If the reason for dismissal is redundancy an employer must pay statutory redundancy pay, the amount of which depends on the number of complete years of service and the employee's age. See the table below. A redundancy payment is not subject to tax or NI.

Age-Based Formula:

• Under 22: 0.5 week's pay for each year worked.
• 22 to 40: 1 week's pay for each year worked.
• 41 or older: 1.5 weeks' pay for each year worked.

The calculator here is quite useful. https://www.gov.uk/calculate-your-redundancy-pay

 

[eteb3]

As this would work out to more than the period of notice my shop has been given, how do I stand legally?

@Newchodge has the detail. The principle is that the risk of the shop lease being terminated falls on you, not on your employee, so your difficulty makes no difference to their rights.

 

[Lisa Thomas]

Agreed - the timing of the ending of the lease has no relevance to what you are due to pay the employee. Can the business afford to pay off all of it's creditors?

 

[jimbof]

I have shop lease that is subject to 1 months notice.I have been given notice and will have to cease trading.
I also have 1 member of staff, who has worked for me for a number of years, who I have had to give 1 months notice to.
I am required to pay redundancy due to the number of years worked but also 1 weeks pay for every year worked in lieu of notice. As this would work out to more than the period of notice my shop has been given, how do I stand legally?

Are you sure about the lease - do you want to stay in the property?
Unless the lease is very specifically drafted and agreement signed (properly) to say that is is outside the LTA 1954, you may be able to argue not to leave, and / or be compensated for having to leave. It might be worth checking.

 

[Michael Loveridge]

I have shop lease that is subject to 1 months notice.I have been given notice and will have to cease trading.
I also have 1 member of staff, who has worked for me for a number of years, who I have had to give 1 months notice to.
I am required to pay redundancy due to the number of years worked but also 1 weeks pay for every year worked in lieu of notice. As this would work out to more than the period of notice my shop has been given, how do I stand legally?

As has been mentioned, unless you specifically agreed at the outset that you would not benefit from the protection offered by the Landlord and Tenant Act 1954 your lease is almost certainly protected, so that if you don't want to leave you may not have to.

The key question is therefore are you happy to leave when the notice expires?

 

[Newchodge]

Unfortunately the Op has not been back in the week since their original post.