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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 47907
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I run a family business which I am looking to close it in 12

Resolved Question:

I run a family business which I am looking to close it in 12 months time as my father passed away recently ( as it was me and him running it). I employ 1 other who has been with the company for 25 years, he is 40/41 yrs old now. He started with a verbal contract at the garage when he was 16 and has never had a written contract since. I will need to make him redundant when I close the garage next June. He gets minimum/ statutory sick/ holiday pay.
Can you advise me as to how much redundancy I have to pay him, how much notice and anything else I need to provide him with please?
Submitted: 2 years ago.
Category: Employment Law
Expert:  Ben Jones replied 2 years ago.
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. Does he work set hours or do the vary?
Customer: replied 2 years ago.
Hi - he works set hours in the week and also Saturday mornings.
Expert:  Ben Jones replied 2 years ago.
So I presume you can identify a set wage for him in a sense that his pay does not really vary from week to week or month to month?
Customer: replied 2 years ago.
Yes- he has a set wage
Expert:  Ben Jones replied 2 years ago.
If you are closing the business down you are making the employee redundant. You would need to ensure a fair redundancy procedure is followed and also pay them whatever they are due under contract or law.
A fair redundancy procedure would involve you advising the person they are at risk of redundancy due to the closure of the business and invite them to attend at least one consultation meeting. There you would discuss the reasons for the proposed redundancy, what could be done to avoid it (often nothing but still worth discussing it) and what alternative employment you may be able to offer them (again unlikely but discus that with them).
Once it is clear that redundancy is inevitable you can confirm their redundancy in writing, advising them that they will either have to serve their notice period or that they would be paid in lieu of notice. They would be entitled to 12 weeks’ notice and any accrued holidays for the current holiday year. In addition they would be entitled to a redundancy payment, which you can calculate here:
https://www.gov.uk/calculate-your-redundancy-pay
I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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