Redundancy Question

[vaud]

sammatty said:

vaud said:

I don;t think you can say that without more information. It would depend on where in the country, if she has transport, proximity for school pickups, etc.

Norfolk based (just outside of Norwich), with own transport, currently working 2 Fri/Sat, 2 year old currently in daycare Fridays only. Likely that the freedom of being mobile (or home salon) would be a benefit to future work/life balance.

Then in her shoes I would take some formal legal advice and push for the redundancy payment and put that money into going mobile.

IANAL

[Foliage]

Drihump Trolomite said:

Lots of heartache ahead for little reward

Salon is not somwehere people go to, they go to their stylist. Get your wife to make the leap to doing home visits - friend of ours did this, she loves the freedom it gives her. She got a contract with a local retirement home too, loads more options than renting a chair = all risk and no reward.

Still seek the correct recourse but in the mean time look into alternate route for her. Speak to proper legal types, it sounds like constructive dismissal if she's left no choice but thats just my Jeremy Kyle opinion and its worth st.

It would be interesting to see what a lack of contract rent a chair would look like. As she is now self employeed she could behave extremely unethically and get away with it. Moving all her regulars to home visits at a cheaper rate, poaching clients. she will be self employed after all, just renting a chair. When the boss makes demands she will have more power as she isn't an employee. She could really do a number on his business if she really wanted too.

[cbmotorsport]

Foliage said:

Drihump Trolomite said:

Lots of heartache ahead for little reward

Salon is not somwehere people go to, they go to their stylist. Get your wife to make the leap to doing home visits - friend of ours did this, she loves the freedom it gives her. She got a contract with a local retirement home too, loads more options than renting a chair = all risk and no reward.

Still seek the correct recourse but in the mean time look into alternate route for her. Speak to proper legal types, it sounds like constructive dismissal if she's left no choice but thats just my Jeremy Kyle opinion and its worth st.

It would be interesting to see what a lack of contract rent a chair would look like. As she is now self employeed she could behave extremely unethically and get away with it. Moving all her regulars to home visits at a cheaper rate, poaching clients. she will be self employed after all, just renting a chair. When the boss makes demands she will have more power as she isn't an employee. She could really do a number on his business if she really wanted too.

He'd have to be seriously stupid (and it sounds like he is) not to protect himself.

[cbmotorsport]

sammatty said:

vaud said:

I don;t think you can say that without more information. It would depend on where in the country, if she has transport, proximity for school pickups, etc.

Norfolk based (just outside of Norwich), with own transport, currently working 2 Fri/Sat, 2 year old currently in daycare Fridays only. Likely that the freedom of being mobile (or home salon) would be a benefit to future work/life balance.

Then definitely pursue this, get the redundancy. It sounds like it's the catalyst to better things!

[vaud]

cbmotorsport said:

Then definitely pursue this, get the redundancy. It sounds like it's the catalyst to better things!

Of course there is the underlying question to consider - as to "why" the employer is doing this.

Pursuing the redundancy sounds the right way to go, BUT only if the owner has money. If she goes for redundancy and her colleagues all do as well, there is always a risk that the business folds. Just a consideration.

Probably best to move quickly.

[pavarotti1980]

sammatty said:

It has always been somewhere in the plan for us use some of our home as a salon or for her to go mobile. I think this is the push needed after 14 years, we are in a fortunate position that her earnings are not essential to our finances.

And before January make sure she gets all the contact details of her regulars before she cant get access

[Drihump Trolomite]

sammatty said:

Drihump Trolomite said:

Lots of heartache ahead for little reward

Salon is not somwehere people go to, they go to their stylist. Get your wife to make the leap to doing home visits - friend of ours did this, she loves the freedom it gives her. She got a contract with a local retirement home too, loads more options than renting a chair = all risk and no reward.

Still seek the correct recourse but in the mean time look into alternate route for her. Speak to proper legal types, it sounds like constructive dismissal if she's left no choice but thats just my Jeremy Kyle opinion and its worth st.

It has always been somewhere in the plan for us use some of our home as a salon or for her to go mobile. I think this is the push needed after 14 years, we are in a fortunate position that her earnings are not essential to our finances.

Then do it, seriously. The freedom of not having to work for someone is amazing - unfortunately i have returned into the corporate machine for a while and it sucks

[cbmotorsport]

vaud said:

cbmotorsport said:

Then definitely pursue this, get the redundancy. It sounds like it's the catalyst to better things!

Of course there is the underlying question to consider - as to "why" the employer is doing this.

Pursuing the redundancy sounds the right way to go, BUT only if the owner has money. If she goes for redundancy and her colleagues all do as well, there is always a risk that the business folds. Just a consideration.

Probably best to move quickly.

Yes, move quickly and don't discuss her plans with her colleagues for now.

[martinbiz]

vaud said:

True, but 24 weeks pay gives a lot of time to find a new job.

Also if she accepts and moves to rent a seat, there is a risk that the new terms would allow the owner to cancel the rental.

Don’t forget half of that is subject to tax and NI

[valiant]

martinbiz said:

vaud said:

True, but 24 weeks pay gives a lot of time to find a new job.

Also if she accepts and moves to rent a seat, there is a risk that the new terms would allow the owner to cancel the rental.

Don’t forget half of that is subject to tax and NI

And she’d lose all sickness, holiday and pension entitlements.

Looks like the employer is trying to lower his employee costs whilst simultaneously increasing his flexibility and his hold over his new ‘contractors’.

He also seems to forget that women tend to go for the stylist rather than the salon.

[Durzel]

She’s going to lose all her PAYE benefits anyway. That is happening regardless of the outcome of redundancy discussions.

[Jasandjules]

vaud said:

Of course there is the underlying question to consider - as to "why" the employer is doing this.

To avoid paying NICs, Pensions, Holidays, sick, maternity pay etc...

[Sheepshanks]

cbmotorsport said:

He'd have to be seriously stupid (and it sounds like he is) not to protect himself.

Once into "rent a chair" there's nothing he could do - the nub of it is they're her clients.

[Drihump Trolomite]

if she is paye, go on to HMRC and check her NI contributions to make sure she hasnt fallen for the scam of tax deductions but no contributions

[cbmotorsport]

martinbiz said:

vaud said:

True, but 24 weeks pay gives a lot of time to find a new job.

Also if she accepts and moves to rent a seat, there is a risk that the new terms would allow the owner to cancel the rental.

Don’t forget half of that is subject to tax and NI

I thought the first £30,000 of any redundancy isn't taxed?

[martinbiz]

cbmotorsport said:

I thought the first £30,000 of any redundancy isn't taxed?

I think the OP has suggested 12 weeks is redundancy which will be tax free and the rest is the statutory 12 weeks in lieu of notice which is subject to tax and NI

[cbmotorsport]

martinbiz said:

cbmotorsport said:

I thought the first £30,000 of any redundancy isn't taxed?

I think the OP has suggested 12 weeks is redundancy which will be tax free and the rest is the statutory 12 weeks in lieu of notice which is subject to tax and NI

Ahh..sorry.

[jonwm]

She should get redundancy, however she will be much better off on a rent a chair basis, although not declaring all earning (hear say), my wife's friend went from earning just enough to get by to now doing half the hours and having a pretty good lifestyle funded by moving to a rent a chair basis.

I'm unsure how long HMRC can ignore the rent a chair cash trade, she wont accept any other payment than cash, even friends cant transfer money into her bank.

[Roo]

jonwm said:

She should get redundancy, however she will be much better off on a rent a chair basis, although not declaring all earning (hear say), my wife's friend went from earning just enough to get by to now doing half the hours and having a pretty good lifestyle funded by moving to a rent a chair basis.

I'm unsure how long HMRC can ignore the rent a chair cash trade, she wont accept any other payment than cash, even friends cant transfer money into her bank.

My wife's stylist is the same.
Rent a chair and only accepts cash.
Her previous stylist as the same salon was an employee and could take card payments.

[vaud]

anonymous said:

[redacted]

I don't know. I was going on the OPs statement and playing them back, not asserting it was their right.


Plugging some quick numbers into the Gov calculator (aged 40, 14 years employment, £160/week) it gives 14 weeks.


From gov.uk:
Based on your answers, your statutory redundancy payment is £2,240 (£2,240 in Northern Ireland).

Your entitlement is 14.0 weeks.

You get:

0.5 week’s pay for each full year worked when you’re under 22
1 week’s pay for each full year worked when you’re between 22 and 41
1.5 week’s pay for each full year worked when you’re 41 or older