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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50155
Experience:  Qualified Employment Solicitor
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We run a small business - our lease is now on a month to

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We run a small business - our lease is now on a month to month basis and we have an employee on a contract where we have to give them 2 months notice if we have to leave our premises as stated in their contract - for this reason we want to terminate the contract. Is this allowed? We also at present have them on a 15% quarterly bonus which we want to take out of the contract. If we give them the 8 weeks notice of contract termination is this all legal?
Customer: replied 1 year ago.
Sorry - just to clarify I meant to add a full stop. In the contract they are entitled to 8 weeks notice. Because we are only on a month to month lease we want to terminate contract

Hello how long have they worked there for?

Customer: replied 1 year ago.
1 year end of this month

Ok thanks I will respond later today as I am in tribunal right now thanks

Customer: replied 1 year ago.

Many thanks for your patience. If this person has been employed continuously by you for less than 2 years, they will not be protected against unfair dismissal. This means that you can terminate their employment for more or less any reason and without following a fair procedure as long as your decision is not based on discriminatory grounds. There is no discrimination at play here so do not worry about that. Can therefore simply issue them with the required notice period to terminate their employment and it will legally terminate on expiration of the notice period.

In terms of the bonus, you need to pay them for anything that has already accrued or is due before the end of their employment but once their employment terminates so will the entitlement to the bonus.

Also remember that they must be paid for any accrued holidays, although there is a way to force them to take outstanding holiday as part of their notice period and not have to pay them on top of the notice period.

This is your basic legal position. I have more detailed advice for you in terms of the procedure to make them take their accrued holiday as part of their notice period, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you

Customer: replied 1 year ago.
Thanks very much. Please can I ask if we terminate their contract and hire another person in their position on a different contract contract/position is that also ok?

Oh yes that would be fine, it would only have been an issue in an unfair dismissal mater which is not relevant here. Hope this clarifies?

Customer: replied 1 year ago.
Thanks again - I ll get the rating done - you have been very helpful. To make sure I follow protocol its just verbal and written notice of the contract being terminated, giving the notice we have in our contract. Nothing else that we need to do?
Customer: replied 1 year ago.
if it helps his contract is below added

Thanks - yes you simply need to give them written notice of termination, specifying the termination date and allow them to work until then as normal. Once their employment ends, you need to pay them for the time worked as normal , together with any outstanding holiday pay. Hope this clarifies?

Customer: replied 1 year ago.
it does - if he was to give us his 3 months notice and we want him to go sooner - there is nothing we can do is there? ie as our notice is 8 weeks to him but his notice is 8 weeks to us. We will have to do the 3 months he gives as its per his contract?

if you get in there first and give him his 8 weeks notice before he gives his 3 months notice then your notice will take precedence and he only has to work 8 weeks. If he submits his notice first then his 3 months will take precedence and he would be entitled to work and be paid for that 3 month period (i.e. you cannot then give him your 8 weeks notice and terminate him after 8 weeks). However, what you can do is ask hi if he is prepared to leave earlier but you must still pay him for the remainder of the 3 months he is due. So let's say you want him gone after a month - he leaves your employ at that time but you must then pay him in lieu of the remaining 2 months he is entitled to.

If your original question has been answered I would be grateful if you could please quickly rate my answer by selecting 3, 4 or 5 starts at the top of the page - it only takes a second to do and is an important part of our process. I can still answer follow up questions afterwards if needed. Thank you

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