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  • Redundancy with no formal contract
  • theotherjonv
    Full Member

    My wife has heard through the grapevine that she is going to be made redundant. She works for a small ‘party selling’ company, as a sales consultant which is self employed. No issues there. However for the last 3 and a bit years she has also worked for a few hours per week using her prior skill set doing marketing brochures, employee training and the like. This has never been formalised in a contract, however is formal in so far as:

    She has a fixed number of hours per week
    She is paid per hour at an agreed rate by payslip, etc.
    She has written communication from a few months back when they asked her (and she agreed) to reduce the agreed hours.

    I recall from a manager’s course I did a few years back that even though she doesn’t have a written contract, the fact she has routinely been providing services for set hours and set rates, that she in essence has one ‘as of convention’ or something.

    Is my understanding loosely right, that she should expect reasonable – ie 3 weeks notice?

    It’s a relatively small sum at only a few hours per week, but a. after Christmas £200 is £200; b. she doesn’t take kindly to the fact that everyone else seems to know and no one from the main office has the courtesy to call her.

    Anyone need someone to do general marketing, proof reading, social media blogging / advertising (we have a decent following in the ‘celebrity chef’ field if that’s your area) – in the Guildford or nearby area. She will shamelessly pursue a target to get your product sample into their hands if that’s what you need. Especially if you can eat it 😉

    ninfan
    Free Member

    She is paid per hour at an agreed rate by payslip, etc.

    Is tax deducted or not? Is there a tax code is on the payslip? Has she received annual P60?

    theotherjonv
    Full Member

    Yes (doing tax return this week as she hasn’t earnt enough to have had tax deducted) but no tax code – it just has 20% removed.

    And yes to a P60

    ninfan
    Free Member

    Sounds like she is a PAYE employee then

    Given it was regular hours, I think that you are right in that it would be taken to be a de facto contract of employment rather than casual.

    Could get messy for them if they have not gone through proper process

    Speak to ACAS

    woody21
    Free Member

    One of the tests for being employed (where the “employer” believes that you are self employed) is does the employer provide you with all the equipment / leads etc, if they do then it is likely you are employed and eligible for the entitlements of an employed person – holiday pay etc

    http://www.adviceguide.org.uk/england/work_e/work_rights_at_work_e/contracts_of_employment.htm

    I assume that you are in England. As always take proper advice

    theotherjonv
    Full Member

    Cheers people, that CAB link had the phrase I was looking for – custom and practice.

    Not sure we want to involve CAB or anyone else at this point, we’ll sit tight until they have the courtesy to give her a call and deliver the news, then we’ll ask if they want her to work her notice or pay her in lieu. And then take it from there.

    PePPeR
    Full Member

    If they’re talking of redundancy then they had better be going through the correct procedures, (which to be fair are generally just a formality). But if they aren’t complying with the correct redundancy procedure then they can be in trouble.

    theotherjonv
    Full Member

    Look, we understand the redundancy. The small co my wife works / worked for has been bought, and they have full time office staff in the newco that can do it. It’s not even so much about ‘procedure’ itself. It’s that a/ they haven’t the courtesy to discuss it with her, yet others know; b/ the word is that they seem to think she’s a self employed contractor – which she is for the party selling part of it – but she clearly isn’t for the head office support part.

    Hence they should give or pay a fair notice period. Simple as.

    br
    Free Member

    Hence they should give or pay a fair notice period. Simple as.

    +1

    Why doesn’t she just ask, or would she rather let it ‘roll’ as she’s still been paid?

    nickdavies
    Full Member

    If redundancy then in theory it should be 3 weeks if she’s been there 3 and a bit years.
    If you’re talking about dismissal, then you would probably have to argue reasonable notice which is a bit ambiguous, 1 pay period would likely be the done thing. So if she’s weekly, a weeks notice, 4 weekly, 4 weeks notice etc.

    Can’t see any company provaracating though given if we’re talking a few hours a week it will be such a small figure that if you play a fair cop they shouldn’t quibble. Obviously same for you as it wouldn’t be worth pursuing if they do. I’d probably wait for something formal before asking questions though….

    theotherjonv
    Full Member

    Why doesn’t she just ask, or would she rather let it ‘roll’ as she’s still been paid?

    Bit of that, if she can make her *notice* drag on a bit she gets paid for longer – but for the few hours she does then it barely registers. But it’s also a personality thing too; the new boss hasn’t handled any of this well and she doesn’t feel inclined to make it easier for her. If you want to be the boss sometimes you have to do unpleasant things, so man (or woman) TF up and handle it properly. Don’t slip it out to her colleagues and then avoid the subject.

    *notice* as in time from finding out through the grapevine that she’s toast, not any formal notice as per the above discussion.

    theotherjonv
    Full Member

    I’d probably wait for something formal before asking questions though….

    and this.

    At some point she’ll get a call – ‘Really sorry, but we can handle the jobs you do from Head Office now and you aren’t needed’

    ‘OK, do you want me to work my notice or will you pay me in lieu and i stop immediately?’

    ‘Erm……. notice? Aren’t you self employed?’

    ‘No. I’m paid for my agreed hours monthly, PAYE’d, given specific jobs by your predecessor…. makes me a contracted employee with 3 years service, means you should give me 3 weeks notice. The fact it’s not on paper doesn’t matter, custom and practice. Look it up’

    Simple as……

    The fact the new co and hence boss is American ‘helps’ as in they don’t seem to have a clue.

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