Redundancy

[36TEAK36]

Hi, I am asking this question for a friend of mine.

For the past 4 years he has been working for a private company as a third party contractor in an NHS Hospital.This Contract between the private company and the Hospital comes to an end at the end of this month. The Contract is out to tender, but no third party supplier has been chosen yet. I think the intention was that my friend would be employed by the chosen third party under TUPE.

My question is, if no third party is chosen by the end of this month, is my friend entitled to redundancy pay from the Private Company he is employed by, who have already told him his employment with them ends at the end of this month?

If it is of any help, the private company has not put a bid in for the tender as they are no longer interested in this business, so my friend will not be kept on by the private company.

[themas]

If his employment comes to an end because his employer no longer has the contract then he is definitely redundant. He will be entitled to redundancy pay (1 week's pay up to �330 max. for each complete year of service, or 1 & a half weeks if he is older).

He should also get pay in lieu of notice if he has not been formally given sufficient definite notice (he should have had 1 week's notice for each complete year of service). This would be full pay & without tax or NI deducted.

He should also get any accrued holiday pay owing.

[buildersmate]

Agree with the above - if that it what happens.
However if there are no bidders into the NHS because the private sector just isn't interested, it seems unlikely that the NHS will just do without the service.
My guess is that the NHS will take the service back in house again - and your friend would then typically be TUPe'd back into the NHS. The private company will want that scenario, because they will wish to avoid redundancy costs.