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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50149
Experience:  Qualified Employment Solicitor
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Hi, I have a limited company, with 3 employees, but no longer

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Hi, I have a limited company, with 3 employees, but no longer can afford to run the company and want to close it down. How would I go about this? regarding the employees?
Ben Jones : Hello, my name is ***** ***** it is my pleasure to assist you with your question today. How long have they each worked there for?

THe company has been running since March 2014 empolyees have had contracts since then

Ben Jones :

Do they have any contractual notice periods when their employment gets terminated?

Customer: Hi Ben it states 4weeks notice, but it was was a 3 month probationary contract that was not renewed. One of the employees has found out about the possible closure of the company and threated court proceedings.
Ben Jones :

Hi, if you are closing the company then that would amount to a redundancy situation. You would therefore have to make your employees redundant and you would have certain liabilities to make payments to terminate their employment. These would include:

  • Redundancy payment for anyone that has over 2 years’ service with you but if you have only been operating since earlier this year then that would not apply here

  • The contractual notice period that each employee is entitled to on termination of employment. The notice periods you mentioned may have been under a probationary contract but if you did not offer them a new contract and just continued employing them then this contract would have simply continued to operate until something new was offered so at this stage you would need to honour the notice period in it

  • Any holidays that have been accrued since the beginning of their employment and which remains untaken by the time their employment terminates.

As long as you ensure these payments are made then the employees would not have any grounds to issue court proceedings against you or the company.

Hope this clarifies your position? If you could please let me know that would be great, thank you

Customer: I did my research and came up with the same answer but wanted to be ensured that it was correct so thanks for that
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