can he claim redundancy?

tamsin1982

my dad is going to be 65 at the end of April, he has worked for the same company for the last 10yrs
last friday all the employees have been told that from the 1st of April they're all going to be self employed!
Is he able to claim redundancy? he thought no and definately not as hes so close to retirement age but some of his 'knowledgeable' friends have said he can?
any info greatly appreciated
thanks

dampsquib

As he will only be one month off retirement, it would be a crazy company that made him redundant, but crazy things do sometimes happen.
It would be cheaper for his company simply to pay him until the end of April and send him home on a months "gardening leave", but also pass some work his way on a self-employed basis, if they still need him for another month.

tamsin1982

he had no intention of retiring but I guess they could force it? but if they no longer employ him after thursday then its their own fault for not waiting!
is making him self employed a type of redundancy? he is a hgv driver and will still be delivering the companies freight but invoicing a new company that has taken on the jobs? ive searched so many websites my head hurts lol

getmore4less

This is one for ACAS for the dismisal/redundancy and HMRC they decide if you are self employed not the company.

tamsin1982

I gave acas a call and the company has to give him 10 weeks notice (1week per year) before they can change his contract and if they still wish to force him self employed then they will have to pay him redundancy
im sure a few of his work colleagues will be relieved to hear that news!

lemonjelly

I feel the acas advice you've been given is wrong.
He is only redundant if the position ceases to exist...

Plus, if he is in his final year prior to the usual retirement age, as each month progresses, any redundancy package is reduced by 1/12th.

I'd expect that if 65 is the usual retirement age, the company will wait until his birthday & wave him on his way.

However, what the company are doing appears well dodgy!

getmore4less

lemonjelly wrote: »

I feel the acas advice you've been given is wrong.
He is only redundant if the position ceases to exist...

Plus, if he is in his final year prior to the usual retirement age, as each month progresses, any redundancy package is reduced by 1/12th.

I'd expect that if 65 is the usual retirement age, the company will wait until his birthday & wave him on his way.

However, what the company are doing appears well dodgy!

This is no longer true for statutory redundancy payments.

tamsin1982

hes spoken to his boss and basically the company is sinking so theyre doing this to try save it or at least pro long it so he is going to go self employed for a few months until his morgage ends

I do think it would have been redundancy though as the position wouldnt exist within the company!?

McKneff

The other younger employees ought to be ringing ACAS also. A company cannot decide whether there workers are self employed. What does your dad do and what does the company do.

HMRC decides who can be self employed or not.
Usually people who use their own tools, issue invoices, statements etc. work at different places like painter and decorators/ plumbers for instance.

They could if they wish just wait till your dad is 65 and then just retire him
and not necessarily give him any other work.

tamsin1982

hes a lorry driver for a freight distribution company, they have all been 'given' the vehicle they use and have to insure,tax, mot and pay for their own fuel etc then invoice for hours they've done which i assume is a fair bit higher than previously.
he thinks he is doing the younger ones a favour by not telling them as most haven't been there long and if the company folds they wont have a job, although I think they really are just prolonging the inevitable

getmore4less

tamsin1982 wrote: »

hes a lorry driver for a freight distribution company, they have all been 'given' the vehicle they use and have to insure,tax, mot and pay for their own fuel etc then invoice for hours they've done which i assume is a fair bit higher than previously.
he thinks he is doing the younger ones a favour by not telling them as most haven't been there long and if the company folds they wont have a job, although I think they really are just prolonging the inevitable

Looking well dodgy

Have they been given FULL title to the vehicle so they own them when the comapny folds.

Can they use the vehicle for other jobs that pay more and turn down work from the old emplyer?

This looks like desperation, up front costs transfered to the emplyees.

Do not pay out any money in advance