08 Sep Dealing With Redundancies Correctly
Remember that there are key steps that need to be followed as far as employment law is concerned. It is also important to treat any payments on termination of employment correctly for tax and national insurance purposes. In genuine redundancy situations, the first £30,000 paid on termination of employment is tax free but many employers get this wrong.
The £30,000 includes statutory redundancy pay and any enhancement from the employer as well as continuing benefits such as private health insurance.
The excess is subject to income tax and employers national insurance. We can of course assist you with the process to ensure that the redundancy process is dealt with correctly. We would also recommend seeking Employment Law advice from a solicitor.