LTD company employment nightmare!

[Dusty Rhodes]

apguy said:

Okay-dokay. So the ex-employee is only claiming the missing statutory redundancy.

From reading your previous posts, it would appear that an Employment Tribunal may take the view that TUPE applies and its continuous employment. In which case, it would be easier and less costly to pay the missing statutory redundancy, rather than defend a case that is likely to fail.

Assuming I have read your previous posts correct; as the person had 2 years prior employment at the old business and 1 year at the new (+2 months absence) then you're only looking at 3 weeks pay @ £330 a week. Assuming ex-employee is between 22-40 and has served 3 complete years. So less than an grand.

Yes, exactly, an extra grand if that. So I'm at a loss to explain why it's suddenly gone legal.

Sounds like we would be best to just making a final offer via a Solicitor for the full statutory entitlement and leave it at that. It's almost as if they're expecting some sort of compensation over an above which if I understand employment tribunals is very unusual, especially as she already has another job, I job I might add that we have some evidence now she was working in already hence the request to us for flexible hours... Cheeky bugger.

[Dusty Rhodes]

zippy3x said:

Dusty Rhodes said:

Vesuvius 996 said:

Eric Mc said:

The key would be whether the new employment was merely a continuation of the old.

To a neutral (like me) it would appear that the employee has a strong case for arguing that it was. This could work against you at a tribunal or in a court. I don't suppose that there were any clauses in the new contract specificially stating that this was a brand new employment and specifically stating that all accruing rights from the old company were NOT to be transferred to the new?
The fact that the old company's name was quoted in the new contract indicates to me that the new employment contract was a cut and paste job and therefore was identical to the old one. This again will not help your cause.

If her duties at the new company were the same as the old, again she has a case.

Are there any arguments you could use that the new employment had absolutely nothing to do with the old?

Eric has it.

I like the bit about you paying him off without him signing the "full and final settlement" letter.

Good work.

Yes. My partner (spouse) and I have had words about this...

Good work indeed.

Okay will check the paperwork Eric.

If all else fails (given that the former employee is in no way out of pocket and we already know 'it' has a new job) we could just draw a line under the whole sorry affair and close the company right?

I was under the impression that you don't need to sign a contract to be bound by it. If the former employee accepted the payment, aren't they deemed to have agreed to the terms of the payment?

BACS. I know don't say it again. Lesson learnt.

[apguy]

Dusty Rhodes said:

So the former employee asked for a payment equal to the statutory redundancy payment + the months payment originally paid + taxes paid. Not a lot of money in total (>5k).
My partners company paid up.

I'm confused about this bit though. As it would suggest that you've already paid at least some statutory redundancy. And you've also paid another months salary. So I'm guessing the redundancy amount claimed is going to be significantly less than a grand. In fact it could be that you have over paid salary. In which case you could enter a small claims court submission for the overpaid salary. I'd take some legal advice from a local solicitor with an HR law background...

Edited by apguy on Tuesday 19th August 15:42

[zippy3x]

Dusty Rhodes said:

zippy3x said:

I was under the impression that you don't need to sign a contract to be bound by it. If the former employee accepted the payment, aren't they deemed to have agreed to the terms of the payment?

BACS. I know don't say it again. Lesson learnt.

We all make mistakes - don't sweat it - and i don't mean to go on - but, i'm pretty sure that they have still technically accepted the money.

i am no expert, but if you do go to see a lawyer type then i would at least ask the question

[Dusty Rhodes]

We've finally been able to speak to out HR consultants and the advice is good. Accept that TUPE could be deemed to apply, pay redundancy within the statutory rules, move on.

Fingers crossed.