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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47340
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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Am I entitled to any severance pay? I have worked under

Resolved Question:

Am I entitled to any severance pay? I have worked under contract for over 20 years for a Tourist company as a Tour Director ( Trafalgar Management Ltd) who have decided they will no longer give me any work. I was paid per day for days on I worked on tour including holiday pay and insurance. There was definitely a 'Master-Servant' relationship despite the wording of their contract. As well as paying me I was a franchisee..... i.e. I paid them an Introduction fee and a Sales and marketing fee for the guests they gave me. All tours were operated under their name and to their brochure. Yours faithfully, Andrew XXXX

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 :

Can you please check what you believe your employment status was by following this link and answering the questions, then letting me know the likelihood of whether you were an employee or self employed:

www.hmrc.gov.uk/employment-status/index.htm#1

Customer:

Hi Ben,

Customer:

The link to HMRC that you sent does not open and the actual website is of course huge. Can you give specific q's I need to answer?

Ben Jones :

it opens for me, can you please try again

www.hmrc.gov.uk/employment-status/index.htm#1

Customer:

Hi got on to site. It is neither yes or no to all q's in either sections.

Ben Jones :

ok, well at the best of times this is a grey area - there is no one single test that you can use to determine your status and if often would come down to the courts to make that decision. The tests you took are the most commonly used but if they cannot give you a likely answer then it would really have to be a decision made by a court by examining your employment relationship in more detail.

In terms of a severance payment, you would only be entitled to that if you can show you were an employee and that your employment is now being terminated due to redundancy. If you were self employed, a franchisee, etc - basically anything other than an employee, then you would not be entitled to any severance payment and your employment can simply be terminated with reasonable notice

Customer:

Whatever my status I was given no notice whatsoever and just told I was now free to go and work for any other company I chose to.

Ben Jones :

in terms of notice, as an employee you would be entitled to at least 12 weeks' notice in your case. But if you are not an employee, then the notice you are entitled to receive would either be that notice mentioned in any contract you have, or a 'reasonable' notice period.


What is a reasonable notice period will vary greatly and will depend on the individual circumstances, industry practices, length of employment, frequency of payment, etc. There are far too many variables to consider, which means it is usually impossible to give a precise indication as to what would be reasonable in each case. It is therefore down to the courts to make that decision. The worker can nevertheless raise this issue with the employer and attempt to negotiate a reasonable notice period with them, a period that they will both be happy to accept.

Ben Jones :

Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? Thanks

Customer:

Thanks for your advice. It sounds very complicated and I might have to take my contract to someone. I was asked to check by a friend who is CEO of large recruitment consultancy who has obviously had some experience in these matters. Although a grey area is it worth pursuing in your professional opinion?

Ben Jones :

Yes the issue is that there are two main grey areas here which does not make it easy - one is the employment status and then, depending on that, is the notice you are entitled to - neither is defined specifically in law and the outcome depends on your personal circumstances, any other relevant factors and, in the end, - whatever a judge decides on the day.Before you consider formal legal action, you need to approach the company directly and try to negotiate some compensation with them, for example by threatening legal action if necessary. However, if that does not work, you may have to take formal legal advice where someone can take a proper and detailed look at your situation and advise if it is worth taking the matter further

Customer:

Hi Ben,


the hmrc site does not come as a link. Which bit do you want answering as is a pretty large website?

Andrew

Ben Jones :

did you mean to post the last comment, I think that was what you mentioned at the start?

Customer:

Thanks for advice.

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