Redundancy Question

[sammatty]

I am hoping for some of the collective wisdom of Pistonheads.

My wife is an employed hair dresser (salon based) paid through PAYE, she has 14 years of service at the salon however has never had a paper contract. The business is run by a sole trader (not limited). Wife currently works part-time 2 days per week.

She received a call from her boss last night, he would like all employees of the business to move to being self employed on a rent-a-chair basis. This move is to commence from 1st January 2020. Her boss does not believe that redundancy is applicable.

My view is that she is currently employed and must be terminated to move to self-employed (she is not resigning), therefore statutory redundancy would be applicable, also because he wants self-employment to start on 1st Jan, some notice will be due. With her length of service redundancy would be 12 weeks and notice a further 12 weeks. Whilst her weekly pay is relatively low, 24 weeks of pay is a good sum.

My questions are, can an employer force an employee to go self-employed without 1st terminating employment and what level of consultation is required (business has 3 employees).

I realise there will then be a number of challenges ref self-employment, self assessment, pension etc...

[sammatty]

xjay1337 said:

I would imagine lack of paper contract (or any contract) is a problem.

But if they are on PAYE , I guess hourtly / salaried , then it's pretty obvious they are in employment.....

She has P60s to substantiate all 14 years of employment, I assume that she would have an implied contact with statutory T&Cs.

[sammatty]

bitcrusher said:

Lack of paper contract is irrelevant. Her terms of employment are whatever she's been doing for 14 years unless the business asked her to do something differently eg start at 10am instead of 9am.

Does she currently have paid sick and annual leave? If so whichever way you slice it she's an employee and all normal laws apply. +1 lawyer up if they won't play ball

Yes, paid leave, statutory sick and mat leave, plus an employers pension scheme!

[sammatty]

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.

[sammatty]

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.

[sammatty]

anonymous said:

[redacted]

Per my OP, 12 weeks redundancy (she is under 41 with 14 full years of service), Her service breaks down as 12 year full time, 9 month mat leave and then 18 month part time (2 days per week). I assume therefore that she still has an effective length of service of 14 years, capped to 12 for stat redundancy purposes?

The other 12 weeks are PILON on the basis that her boss wants this to be effective 1st Jan 2020, stat notice would be a further 12 weeks. I fully understand that if she were to be given appropriate notice, no PILON would be payable.

Please do feel free to correct any mis-calculations.