The following Employment Tax guidance note Produced by Tolley in association with Andy Williams at Charles Russell Speechlys LLP provides comprehensive and up to date tax information covering:
Redundancy is a dismissal that occurs because the employer’s business, or its requirements for a particular type of work, ceases either generally or in the specific location where the employee works. The reason for the dismissal is effectively unrelated to the individual’s performance but is the result of commercial decision-making by the employer or some specific economic circumstances that an employer faces.
Redundancies entitle employees to various statutory rights and, in the case of collective redundancies, involve rigorous requirements for consultation with the work force. This means that redundancies have the potential to expose the employer to liability stemming from successful employee challenges and claims. Careful planning for and structuring of a redundancy process is therefore required. This note provides a brief introduction to redundancy. The supporting guidance notes in this sub-topic provide further guidance on the specific important aspects of the redundancy process.
The law to be considered depends on whether the redundancy arises as part of a collective redundancy situation or is simply an individual redundancy.
Redundancy is dismissal that is wholly or mainly attributable to either:
the fact that the employer has ceased or is going to cease carrying on the business for the purposes of which the employee is employed, either altogether or in the place where the employee was so employed
the fact that the requirements of the business for employees to carry out work of a particular kind or to carry on such work at the place where the employee was so employed have / are going to cease or diminish
ERA 1996, s 139(1)
The definition of collective redundancy is somewhat wider and for this purposes redundancy is defined as dismissal for a reason not related to the individual(s) concerned or for a number of reasons that are not so related.
Employees facing dismissal by reason of redundancy have a right to expect fair procedures to be followed, which include:
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
If an individual sells a chargeable asset and makes an allowable loss, how can this be relieved?First of all, since the simplification of capital gains tax from 6 April 2008, the proforma to calculate a loss is the same as the proforma to calculate a gain. See the Basic calculation principles of
Notices of coding are the means by which HMRC notifies both the employee and the employer of the tax code to be applied to the employee’s earnings. There are several types of coding notice, as detailed below. Only one of these types of notice, form P2, is sent to the employee, the others are sent to
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to
Close companies ― overviewMeaning of close companyThe tax rules for close companies are intended to address those companies that are closely controlled (ie by the owners and their families) and therefore could be used to manipulate the tax position of its activities and its investors. Therefore,
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.