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Ross Miller
Ross Miller,
Category: Law
Satisfied Customers: 1770
Experience:  Director (Litigation and Mediation) at Hilltop Solutions
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We need to make an employee redundant because our income has

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We need to make an employee redundant because our income has reduced over the last 2 years and even further due to the lockdown. The employee is 69 years of age. employed as a driver snd warehouse duties but our deliveries have reduced considerably even before lockdown His employment contract states that we may vary his hours of work and when he became an OAP we reduced his hours from full time to part time His redundancy pay would be near £5000 which we cannot afford. Can we reduce his hours to zero and offer him £2000 compensation
JA: Have you discussed the termination with a manager or HR? Or with a lawyer?
Customer: No we are a small company with only 4 employees
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: I am a director but have received no pay for the last 2 years . I and my wife who is a major shareholder have received no dividend for the last 2 years
JA: Anything else you want the Lawyer to know before I connect you?
Customer: Don't think so

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Thank you

No you cannot do this as he would likely make a claim to show that this is what you did and could be compensated for the difference. Which means that you would have to pay to defend this action. What you should do is bring him in for a consultation and explain the situation to him and see if you can come up with some kind of compensation for him to leave. You can find a lot of advice about mitigation to do this etc. on the Acas website. If you do this then he would have grounds for legal action. I would bring him in and see if you can negotiate an exit strategy and agreement with him and if you do so then get it signed in writing so that he cannot potentially take legal action against you in the future.

I hope this information has helped. You can find a local solicitor who deals with this on the law society webpage which is;

https://solicitors.lawsociety.org.uk/

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Many Thanks

Ross

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