As we have to pay redundancy for employees whose term exceeds 2 years are we able to avoid this cost – can we issue contracts for just under 2 years? If contracts are issued purely to avoid the redundancy legislation, would they automatically become unlawful?

Posted in : First Tuesday Q&A NI on 3 December 2013
Emma-Jane Flannery
Arthur Cox

Employees with a least two years' continuous employment are entitled to a statutory redundancy payment if they are dismissed by reason of redundancy. The amount of statutory redundancy pay to which an employee is entitled depends on his or her age, length of service and pay (subject up to a maximum £13,500).

Employees may also be entitled to contractual redundancy pay, over and above statutory redundancy pay. A contract of employment that is issued for a fixed term of less than two years to avoid the employer having to pay statutory redundancy pay is not unlawful.

However, if the

Already a subscriber?

Click here to login and access the full article.

Don't miss out, start your free trial today!

Are you fully aware of the benefits of Legal-Island's Employment Law Update Service? We help hundreds of people like you understand how the latest changes in employment law impact on your business.

Help understand the ramifications of each important case from NI, GB and Europe

24/7 access to all the content in the Legal Island Vault for research case law and HR issues

Ensure your organisation’s policies and procedures are fully compliant with NI law

Receive free preliminary advice on workplace issues from Maxine Orr, Partner at Worthingtons Solicitors

Already a subscriber, now or Start my free trial today
Back to Q&A's This article is correct at 02/09/2015
Disclaimer:

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Emma-Jane Flannery
Arthur Cox

The main content of this article was provided by Emma-Jane Flannery. Contact telephone number is 028 9023 0007 or email Emma-Jane.Flannery@arthurcox.com

View all articles by Emma-Jane Flannery