Yes you do. You need to offer a redundancy payment as well as a period of notice if they have been there a certain period of time. If you don't do that, you will have 'come backs' and they will cost you a lot more.
This is a worry. I'm having to let this person go to save the business sliding into the red. I can't afford redundancy pay. I'll be giving a month's notice but I wasn't expecting to have to pay any more.
How long have they worked for you?
I run a small business and for the first time I face having to fire/let go an employee. I'm dreading having to do the deed and wondered if any bosses on here have any tips or insight into what documents I need to process? The employee has done nothing wrong it's just the case of the business no longer being able to sustain the position. Hard times.![]()
They worked for the business (which I took over three years ago) for five years.
Having looked it up it looks like I will have to pay a week's wages for every year they have worked.
I have no doubt it will be a very amicable departure but I still want to make sure I'm doing the right thing without having to pay solicitors for advice.
Yes that is statutory 1 week for every year. You also have to be a little careful as you are supposed to announce potential redundancy and then enter into a 60 day consultation period before making any redundancy. Small business's may be different but I would suggest you research it. May cost you more in the long run if unfair dismissal is claimed and proven.
You still need to have a consultancy period, and then you have to give the person time to make suggestions which could negate a redundancy. Basically, they may suggest that their hours are cut or similar. You also cannot recruit anybody in that position again for a certain amount of time, even if business picks up. Redundancy needs to be a 'last resort'
I run a small business and for the first time I face having to fire/let go an employee. I'm dreading having to do the deed and wondered if any bosses on here have any tips or insight into what documents I need to process? The employee has done nothing wrong it's just the case of the business no longer being able to sustain the position. Hard times.![]()