Redundancy on business closure

[the_g_ster]

Hello all, thanks for reading, I could do with a little advice for a pal who's facing a bit of a tough time.

He works for a small design company. The company is run by one owner/director, and has seen a decline in staff numbers down to just my pal as a direct employee now. The reason for this decline is the general belief the director has been relaxed in the renewal of rolling contracts, and thus some customers have gone elsewhere.

There was a point that my pal was considering buying the business, but really now there is not much business to buy and my pal has a relationship with a handful of clients but most have been managed by the owner.

This means in October my pal is being made redundant. It seems the director is unwilling to offer anything else to him, so I wondered what he is due as a minimum and what options are open to him.

It's worth noting the company has a positive and healthy balance sheet, and has served the owner well, this is through the director's actions not through business failure/insolvency.

[rr78]

If he is employed by the business and not contracting or similar then he should be entitled to redundancy, a calculator of which can be found here:

Direct.gov Redundancy Calculator

He is also entitled to any outstanding pro-rater holiday that has been accrued. This can be taken either as standard holiday or "bought" back from him from his employer.