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Ben Jones
Ben Jones, UK Lawyer
Category: Law
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Hi, I have downsized my business over the past several years

Resolved Question:

Hi,

I have downsized my business over the past several years reducing my staff from seven to just one member and myself. I never recruited other staff when these staff members decided to move on to other jobs or move abroad.

I have a private health and beauty business and frankly I take more money when on my own than this other staff member contributes to the business.

I would like to put her on a self employed contract rather than keeping her as an employee as I want to vary her hours of work, days etc. Most days she comes in for a 7- 8 hour day and only has clients for 2-3 hours.

What is my best approach as next year the lease ends on my business and I am not renewing as I can work my business from home and also am diversifying my own career which will not have a place for this staff member as she is not qualified to work with me.

Thank you,

Catherine Molloy
Submitted: 3 years ago.
Category: Law
Expert:  Ben Jones replied 3 years ago.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today.

Ben Jones :

How long has she worked there for?

Customer: Hi, she has been with me since 2003
Ben Jones :

Good morning, if you wanted to ‘convert’ this person from being an employee to self employed, than that will actually amount to a dismissal in law and as she has the required service to be protected against unfair dismissal you must ensure that you have a fair reason for doing so and also follow a fair procedure.


 


If you no longer require employees to do work of a particular kind for you then that will most likely amount to a redundancy situation. It means you must adopt a redundancy procedure, follow it and then dismiss her on grounds of redundancy, which would also mean paying her a redundancy payment.


 


When you decide that you no longer need her you can write to her and advise her that she is placed at risk of redundancy and that he will now be taken through a consultation period and f at the end of it the redundancy is still required, she can be made redundant. Then the consultation period is actually you holding a couple of meetings with her, discussing the reasons for the redundancy, whether it can be avoided, discussing any options that may exist in terms of other employment with you that can keep her in a job and so on.


 


If at the end of the consultation it is still evident that she must be made redundant then you can issue her with a formal notice of dismissal, as per her contract, which cannot be less than a week for every full year she has worked for you, so around 11 weeks’ notice. You can time the redundancy process so that you issue her with the notice and ask her to work it all the way up to the time he is no longer needed; or you can give her the notice and pay her for it, without asking her to work the time.


 


You also need to pay her a redundancy payment, which you can calculate here:


 


https://www.gov.uk/calculate-your-redundancy-pay


 

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