My Father passed away and I need to pay redundancy to his employee.

mike50867

My Dad was self-employed as a sole trader, and recently passed away - he had one employee. I've worked out the relevant statutory redundancy figure that I need to pay his employee, however I'm unsure of what I need to do from an administration point of view i.e:


-Is there a specific template I need to have the employee fill out to confirm he's received a payout sufficient to his entitlements and that he will not claim again in the future
-Do I need to contact the government for any reason at all, such as national insurance implications etc?


Thanks


Mike

pmlindyloo

mike50867 wrote: »

My Dad was self-employed as a sole trader, and recently passed away - he had one employee. I've worked out the relevant statutory redundancy figure that I need to pay his employee, however I'm unsure of what I need to do from an administration point of view i.e:


-Is there a specific template I need to have the employee fill out to confirm he's received a payout sufficient to his entitlements and that he will not claim again in the future
-Do I need to contact the government for any reason at all, such as national insurance implications etc?


Thanks


Mike

Not much information available on the internet about this scenario other than you are correct that the redundancy pay has to be paid from your dad's estate.

In the absence of anyone else posting I suggest you telephone ACAS for some advice although be prepared that the call staff may not have this scenario in their 'ready made' brief. You could try asking for a supervisor/manager if this happens.

I would think that this redundancy should be carried out in the same way as any other - giving the correct notice, pay and redundancy payment according to the circumstances. Did your dad's employee have a contract detailing anything about notice period/contractual redundancy pay?

In the absence of any contract then the employee would have statutory rights.

I know a lot of this won't apply but it does cover statutory notice/pay and statutory redundancy pay and the need to write out a statement detailing how you've reached the figures.

http://www.acas.org.uk/media/pdf/l/b/Handling-Redundancies-in-small-firms.pdf

As regards the NI etc then I should contact HMRC to notify them that your dad has passed away so they won't be expecting tax returns and can check whether there is any tax owing.

getmore4less

HMRC will need a tax return to date of death for the father.

Also it probably is neccessary to prepare a P45 for the employee.

if the employee is redundnant from date of death(DOD).
they will need to be paid
notice pay(PILON) this may be taxable if contractual take advice
accrued unpaid holiday to DOD(not end of notice if PILON ) taxable
statutory redundnacy based on age and service.

there may be other things but that is what I can think of immediately.

mike50867

Many thanks for your help and advice


Michael