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Redundancy without a contract?

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Chickadee | 17:10 Mon 04th Apr 2011 | Jobs & Education
11 Answers
Hi All

Wonder if anyone can advise please?

My Mum works part time in a shop and has done for 7 years. She is 65.

She is being made redundant and her employer says she is not entitled to any redundancy payment.

She has never had a contract with them (I don't think she even gets a payslip).

I am trying to find any information that may (or may not) help her. I have looked on Age UK website and can't find any info regarding redundancy if you don't have a contract.

Can anyone direct me to anything that might help?

Thanks all
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Dunno but just a thought, given her age maybe she wouldn't be entitled anyway
Question Author
I have checked and she upper age limit no longer exists.
Try this link and see if it is of any help.

http://www.direct.gov.../Redundancy/index.htm

Not having a contract is not a great problem but I would be suspicious about the fact that she gets no wage slips. Is she being paid cash-in-hand? Is her wage going through the books? Is she paying tax and NI?

Have fun!
She does have a contract. It just may not have been written down.
How much, roughly, did she earn per week? Did she pay any tax and NI?
I am really dragging things from the debths of my old brain here but I think if you have been employed for more than 2 years and do not have a contract you are deemed to have silent contract. And if you have worked for the company for more than 2 years you are entitled to redundancy pay. Go to Citizens advice they will probably help your Mum to draft a letter to the Company, if they then refuse I think it will be a tribunal but I am sure CAB will help.
Question Author
Thanks for all your answers guys.

Not sure how much she earns, not enough to pay tax but she does pay NI.

Only two days a week.

I have given her the phone number for Age UK and ACAS and hopefully they can clear it up for her.
Chickadee, she shouldn't be paying any NI either - she should get an age exception certificate from the Benefits Agency, she should have stopped paying at 60 (I did).

I believe it's not legal not to have a payslip, her employers must give her a P60 if nothing else.
I think that contract term is now reduced to 12 months duration of employment, but I could be wrong.
The ACAS people are really helpful.
If she's 65 this year then I think it's safe to assume that she has been drawing her old age pension since the age of 60 (or a married couple's pension is being paid).

Drawing one's pension is no barrier to working in retirement and (I think) no National Insurance would be deductable for a woman over state retirement age, regardless of marital status. Or, if I am wrong, no further state pension accrues despite the contributions deducted. :-(

However, the income should have been declared to the DWP, for them to assess what affect that would have on the pension payouts. If this was not done (cash in hand scenario), it might be advisable to rectify any arrears owed before launching into tribunal proceedings in case the employer tries to use this as a weapon against her case.

Even if she does not qualify for the employer's redundancy compensation scheme then state compensation rules still apply ('n' years' service = 'n' weeks pay in lieu of notice)

good luck
i worked in a shop and it was sold i didnt have a contract and i didnt earn enough to pay tax but evenso i was entitled to 1weeks pay for every year i had worked there and holiday pay my boss at the time checked it all out with his solicitor ,
Yep I say she should get statutory redundancy . try this little link.
http://www.direct.gov.uk/redundancy.dsb

Agree that she shouldn't have been paying NI either, but not sure if you can get it back after overpaying. Best contact NI office in Newcastle about that.

Good luck to her
you may well have been told that hannah, but it is not true. You will have a contract, always be it written, verbal or a statement

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