Made redundant/no contract/no written notice...

Cherry1

Good morning all,

My partner was made redundant yesterday, boss told him at 4pm Friday. Partner worked there for 7 years and never given a contract despite asking for one (he gave up in the end and as his role seemed indispensible he didn't worry...). Boss said he'd be paid 6 weeks plus holiday pay on Monday and would be sent P45. Boss didn't give him written notice of redundancy.

Partner also took out IVA two months ago (10k). I have suggested to him:

1) Make claim for JSA and Housing Benefit asap (online today)
2) Inform IVA people and consider going bankrupt (council tenant, no assets/dependents)

Company he worked for employed 12 people plus a load cash in hand. I am concerned that

1) He has to pay tax on his redundancy money as they're paying him in a lump like his monthly wage as it's due (I'm worried they won't pay him as always sounded like a dodgy company)
2) Info on TUC/ACAS websites applies to companies of 20plus employees.
3) Is he a worker or employee as he hasn't got a contract (I looked on USDAW as he worked in a warehouse but in the office).
4) He's got no rights cos he has no contract - what if they haven't been actually paying his NI contributions all these years? His payslips are just from this small company.

Very grateful for any input/suggestions. Have tried online as above but can't find anything about no contract/how to sort out the don't get taxed on his redundancy pay/not got it in writing...

Thank you.
Cherry

generaloneill

name and shame, who are they?

lesley1960

I think they havent followed proceedures check it out with acas ,even small firms have to some consultation .The redundancy pay can be entered into their pay system tonotattract tax and ni

lesley1960

lesley1960 wrote: »

I think they havent followed proceedures check it out with acas ,even small firms have to some consultation .The redundancy pay can be entered into their pay system to not attract tax and ni

Not having a contract as i understand it wont affect his rights

As long as he has pay slips showing he has paid NI he will be fine , if a company hasnt paid over paye to the tax man that doesnt affect the employee

Cherry1

Generaloneill - haha, had crossed my mind of course however would like to keep all above board at mo, especially because he hasn't received his monies yet and I believe they may have acted incorrectly/are dodgy gits anyway.

Lesley1960 - Appreciate your comments. Yes, I will be checking with ACAS/CAB on Monday. Nice to hear not having a contract shouldn't affect his rights though if that's correct. Thanks.

Mudd14

Not having a contract will not affect his rights, he can refer to the statutory rights that employees have.

In fairness it will look very bad on the employer as they are actually breaking the law but not providing a contract or statement of terms of employment.

£30,000 of redundancy pay is not taxable.

It sounds terrible how there has been no consultation and you could take it to tribunal on failure to consult and provide correct notice periods

Cherry1

Thanks for sharing your knowledge. Must say, it's life affirming having sympathetic responses as I was wondering if I was over-reacting and as it was an awful place anyway I was thinking he's best off out of it. However, am going to do more research on statutory rights/how to not pay tax on his last pay (which doesn't include any notice period) so I/we can approach CAB/ACAS as fully informed as poss.

snuggle69

From how you explain the redundancy was carried out you otherhalf definatly has a case for unfair dismissal, his employer has to consult and cant just make redundant.

It is also illegal for him not to have a contract, and the Employment Tribunal may well take this into account as well.
My recommendation is to take legal advice as soon as possible

Numpty_Monkey

A few things that might helpyou with the contract thing
From http://www.acas.org.uk/index.aspx?articleid=1577

A contract of employment is an agreement between employer and employee and is the basis of the employment relationship. A contract is made when an offer of employment is accepted. A number of rights and duties, enforceable through the courts, arise as soon as this happens.
Most employment contracts do not need to be in writing to be legally valid, but writing down the terms of the contract will cut down on disagreements later on. The Employment Rights Act 1996 requires employers to provide most employees with a written statement of the main terms within two calendar months of starting work.
Not all terms are always explicitly agreed in writing (express terms). The courts have established that all employment contracts have the following terms included, whether express or implied:

• to maintain trust and confidence through co-operation
• to act in good faith towards each other
• to take reasonable care to ensure health and safety in the workplace

Some implied terms can become part of the contract because of the employer and employee's behaviour, through custom and practice over time, or through a firm's rules (particularly if the employee has been made aware of them and given access to them).

And this page
http://www.berr.gov.uk/whatwedo/employment/employment-legislation/employment-guidance/page16161.html

Cherry1

for your replies and advice. Really appreciated.
First thing Monday we're going to phone ACAS, USDAW etc and try to get some legal advice. I will post back what happens.

Cherry1

Hello all,
As partner not a member of any union, couldn't access support from USDAW/TUC. However, CAB have been helpful and he has a 20 minute free appointment with a solicitor next week.

Claiming benefits has not run totally smoothly yet, surprise surprise. Unhelpful and dismissive staff working the Job Centre. Partner made online claim and not heard back after five days so going in there today to make claim in person/on phone.

He did receive his P45, reference and redundancy letter in post yesterday.
Owed notice monies/holiday monies and are starting to go through process of claiming these now.
Will update as it happens.
Thank you.