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2 months to find somewhere new

Hi everyone

I'm asking for some advice on behalf of my bro-in-law.
He works for a market trader, who runs a business selling and installing various electrical goods. Hes' been there around 5 years (ish) and has just been told that after his annual leave in June, he's got 2 months to find another job because they can't afford to keep him.
Although really annoyed, my bro-in-law was just going to find something else so i offered to ask here if anyone knows if he's got any rights. I was thinking that he should be receiving a redundancy payout? The problem is that none of the staff have got any contracts with this employer, although he can proove he's been working for him as monthly (never on time though) payments are made into his bank account and his tax and NI come out of this (before its payed in).

If anyone has any advice i'd love to hear it

Comments

  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Yes, he is certainly entitled to some kind of redundancy payment, although it will not be very much (probably a few hundred, but free of tax). ACAS should be able to tell him his rights.
  • Redundancy is not free of tax, it's a taxable emolument. If the payment is unexpected then it can be a tax free PILON, but that depends on contract...
  • MummyHol
    MummyHol Posts: 287 Forumite
    Thank you- i'll pass this info on to him, along with ACAS phone number.
  • therealdessie
    therealdessie Posts: 618 Forumite
    500 Posts
    It looks like my info is out of date - redunancy is tax free under £30k (the payment, not the cumulative pay)
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