DJFish

Chaps and chappesses,
My other half was sh1tcanned (made redundant) the other day, and I was wondering if any of you good people could help out with a few questions.

Firstly, how long after a redundancy is an employer allowed to re fill the position? They also let their admin person go and they definately need one, can they just get around the problem by hiring in a temp?

The company in question are only paying a percentage of the tax on her redundancy settlement, is this normal and will we need to employ an accountant to sort out the remaining payable tax or is it just a case of filing out some Inland Revenue forms and handing over some cash?

The company have advised her to get a solicitor (at our expense) to check over her redundancy paperwork, is this also the norm? How much is a solicitor likely to charge us for reading a few bits of paper and can anyone recommend a good one in Colchester????

Would really appreciate some input on the above questions, we've thankfully never been in this situation before and it's all a bit bewildering.

Cheers
Dave

Sieze

The citizens Advice Beuro is you best bet for free employent law advice. You can find the number in the phone book.

boomer

There should be NO tax on the first thirty grand of redundancy payment (thereafter at your normal rate) - so dunno what the company is talking about. Do they actually have a payroll department?

If your other half fills in an annual tax return, there are boxes on there to declare any redundancy payments, and the various numbers should appear on her P45 (and normally her final payslip under the year-to-date totals).

I would not have thought that an accountant would be required (unless you have very complex finances), but if the company is as incompetent as you suggest - some legal help might well be in order (though go to your CAB first!)

mb

Dark

iTrader: (1)

In a similar position myself.

She will have to pay tax on any payments made in lieu of notice, untaken holidays, etc. For enforced redundancy many employers make you leave immediately but then pay for for your notice period.

It's only the redundancy payment that is tax free, up to the £30k ceiling. This part is usually based upon number of years service.

As long as the company operates a PAYE scheme then the necessary deductions should all be taken care of automatically.

However if you have any reservations or don't trust the company then a solicitor would be useful and won't cost much ~£150.

Mark

GaryCat

Its possible that the company is not making them redundant but is issuing a 'Compromise Agreement' which effectively is buying back their contract of employment and therefore they are not covered by redundancy law. The company must provide a legal advisor at its own expense not yours, and you can negotiate the payment (I eventually got double what was first offered)

Gary