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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 48460
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Could Ben Jones please answer this? I think my company might

Customer Question

Could Ben Jones please answer this?

I think my company might need to make some people redundant, because the department they work in has not yet made a profit and the rest of the company cannot afford to keep subsidising it until it becomes profitable.

All are full-time employees.

Is it true that, for each employee with more then two years continuous employment, we would have to pay one week's salary for each year of employment, as well as give 3 months notice (or pay 3 months salary in lieu of notice)?

What steps must we take to ensure that we do things properly and we cannot be taken to court for unfair dismissal?

Is there a way round this problem: the work these people are doing is not profitable: if we let these people go, the company has more chance of becoming profitable - except for the cost of the redundancy payments, which we might not have enough cash to pay when the payments fall due.

Thanks
Submitted: 3 years ago.
Category: Employment Law
Expert:  Ben Jones replied 3 years ago.

Ben Jones :

Hello, thanks for requesting me to answer this. With regards to the employees you wish to make redundant - do they have contractual notice periods in place?

Ben Jones :

Hi, not sure if you saw my initial query above - do the employees you wish to make redundant have contractual notice periods?

Customer :

Sorry for delay - am finding answer to your question but so busy at the office that twice have come home without it.

Ben Jones :

No problem, take your time the question will not close