Redundancy entitlement.....have we missed anything

Molly56
Molly56 Posts: 78
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edited 10 July 2020 at 12:39PM in Redundancy & redundancy planning
Just wanted to check that we have not missed anything in potential redundancy

One employee (coach driver/ 69) has worked for last 15 years (coach operator/ sole trader/ one vehicle / no other employees)
No written contract of employment other than single page letter of introduction on joining company
Currently furloughed so receiving furlough pay since mid March; prior to this when no work his employer told him verbally he would pay two weeks at half pay for two weeks then no pay for forseeable future. Nothing received or agreed in writing. 

Over last 15 years employee was paid regular weekly wage each and every week regardless of whether there was work to do (including quiet times in winter which is usual for coaching industry) 
No payslips issued but evidenced by regular payments from employer on bank statements and HMRC records

Current situation.....employer is now actively looking for buyer for the coach....single vehicle owned outright by operator.....no work on books for forseeable future.....employer has stated that he can’t afford to pay for Covid safety equipment .....or am guessing any future wages when furlough comes to end (not sure about mandatory contribution when scheme changes in Aug/Sept/Oct)

All of above tells me that this a redundancy situation.....no coach = no work for a coach driver.....no wages = not fulfilling duties as an employer.....no work on books = no job........= redundancy

Just trying to make sure that we have not missed anything that could jeopardise a redundancy claim.

From my limited knowledge of employment law an employee has a right to receive pay and an employer a duty to pay according to terms of employment contract either written or implied. 

Regarding lay offs or short time working this needs to be agreed in writing and only if employment contract specifically allows for it.....and in the absence of a written contract as in this case then past experience would be taken into account when determining implied conditions of employment. 

Please correct me if I am wrong on any of the above and any further advice would be appreciated. 

Comments

  • JCS1
    JCS1 Posts: 5,276
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    Is it the coach that is being sold or the business?  Would TUPE not apply?
  • Molly56
    Molly56 Posts: 78
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    JCS1 said:
    Is it the coach that is being sold or the business?  Would TUPE not apply?
    The coach is being sold with the intention of probably packing up the business though mention was also made of perhaps hiring a vehicle if work came up some time in the future , both of which seem unlikely at this current point in time and also not cost effective. 
    Forgive my ignorance but what is TUPE?
  • Molly56
    Molly56 Posts: 78
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    Just googled TUPE and don’t think applicable in this case....
  • Masomnia
    Masomnia Posts: 19,506
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    If it's the coach that's being sold but not the routes/jobs/agreements/whatever they're called then I think probs not TUPE imho. Redundancy though, yes.
    “I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse
  • Molly56
    Molly56 Posts: 78
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    Coach business is day trips / tours of Uk mainly with incoming international tourists hence the reason why work is non existent at moment with no sign of return anytime soon
  • Molly56
    Molly56 Posts: 78
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    Molly56 said:
    Currently furloughed so receiving furlough pay since mid March; prior to this when no work his employer told him verbally he would pay two weeks at half pay for two weeks then no pay for forseeable future. Nothing received or agreed in writing. 

    Regarding lay offs or short time working this needs to be agreed in writing and only if employment contract specifically allows for it.....and in the absence of a written contract as in this case then past experience would be taken into account when determining implied conditions of employment. 

    Regarding the above points on being forced to take reduced pay / no pay......the employee was just told this is what would happen and not put in writing or ‘agreed’......could this potentially be addressed as unpaid wages when redundancy happens. 

    Is past experience of a regular amount paid each and every week sufficient evidence of pay in the absence of payslips and formal written employment contract. 

    I am assuming for lay off / short time working to be valid it has to be put in writing and agreed between the two parties, is this correct?
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