Any entitlement to redundancy if less than 2 years service?

B

boogaloo

Registered User
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149
Hi,

3 people are being made redundant where I work. One of them does not have 2 years continuous service with the company.
Is she entitled to any redundancy payment?

If the company decides to just give her a lump sum payment of 4 weeks per year of service (she has 1.5 years), what tax implications does this have, must the whole lot be taxed?
Also, can the employer count the 0.5 year? I presume they can as since it probably wont be technically an actual redundancy payment they can pay what they want.

Any other thoughts on this situation?
 
She is not entitled to statutory redundancy unless she has been employed for two years.

The employer can give her any ex-gratia amount and it will be exempt from tax up to the usual limits.

Brendan
 
Thanks Brendan.

When you say it will be exempt from tax up to the usual limits - are you talking about the redundancy limits of 10,160 etc.?
 
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