Hi Ben, thank you for your reply.
employment date started September 2013. notice period : two months by either party. notice must be given in writing.
salary £40,000 per annum, which is pro rated to £32,000 for a four day week. during July 2014, the employment went too 3 days a week, so, pro rated further from £40,000
however, the company needed to make redundancies to stop the company closing / going into administration and for this reason, stated that the company would not be able to pay notice period ???
Unfortunately in this case you still have a legal obligation to pay the employee’s notice period. The fact that the business is struggling does not exonerate you from this. Only if the business has actually gone insolvent will you be able to try and put this obligation aside, if there are genuinely no funds available. If that happens the employee could potentially try and get payment for part of what they are owed from the Government but for that to happen the business must have been declared insolvent. Until then, it is still your responsibility to pay that. What could happen is that the employee makes a claim in tribunal or tries to petition for the business’ insolvency and once that happens it would entitle them to make a claim from the Government. What you could do is make it clear that even if they go to tribunal it would not clear up any funds to allow you to pay them and they will just be wasting their time and money – that could put them off from making a claim but if they wanted to there is nothing stopping them from doing so.
Hi Ben - thank you for the information which you have provided. this is very useful and I am very grateful for this.
so, given the person was made redundant, does this mean that she needs to be paid her monthly salary x 2 months notice period at the full rate or, can she paid redundancy at a rate of £475 maximum x 1 and half weeks due to age being over 41
I hope this clarifies your position? If you could please quickly let me know that would be great, as it is important for us to keep track of customer satisfaction. Thank you