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As the only employee in my business, can i sack myself with a pay off and re-employ?



piersa

Well-known member
Apr 17, 2011
3,155
London
Just wondering whether this is legally possible?
 




Blue Valkyrie

Not seen such Bravery!
Sep 1, 2012
32,165
Valhalla
Must be legally possible as long as you comply with any tax implications correctly.
 


Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patron
Apr 30, 2013
14,124
Herts
Just wondering whether this is legally possible?

And get the tax-free redundancy payment, you mean? No.

Hang on - that can't be the motive; if the same person is re-employed without a very decent gap, it's obvious that the role wasn't redundant.

The answer's still "no". What are you trying to achieve? I may have some ideas about how to go about it...
 


Wouldn't it be better to close down the business, claim benefits as an unemployed employee and then start up the business again, using grants that are available to start-up small enterprises?
 






TWOCHOICEStom

Well-known member
Sep 22, 2007
10,917
Brighton
if the same person is re-employed without a very decent gap, it's obvious that the role wasn't redundant.

As a side-point. I was made redundant and offered to re-apply for a new role. That new role was identical to my existing role but instead of getting overtime if we worked weekends, they wanted us to work any 5 out of 7 days in a week.

Is that legal?
 


Goldstone1976

We Got Calde in!!
Helpful Moderator
NSC Patron
Apr 30, 2013
14,124
Herts
As a side-point. I was made redundant and offered to re-apply for a new role. That new role was identical to my existing role but instead of getting overtime if we worked weekends, they wanted us to work any 5 out of 7 days in a week.

Is that legal?

If the employer hasn't appointed anyone else to do exactly the same job you were made redundant from on the same terms that you had, then unfortunately it probably is legal, depending on the precise circumstances. If however they have employed someone else to do exactly the same job on the same terms, then no, it isn't...
 


Pavilionaire

Well-known member
Jul 7, 2003
31,274
On what grounds are you sacking yourself - sexual harassment?
 




seagullsovergrimsby

#cpfctinpotclub
Aug 21, 2005
43,947
Crap Town
The "You're getting sacked in the morning" chant at tonight's game might get misconstrued :lolol:
 


shaolinpunk

[Insert witty title here]
Nov 28, 2005
7,187
Brighton
If you sack yourself then how would you have the power to re-hire yourself?
 


knocky1

Well-known member
Jan 20, 2010
13,110
If you do manage to sack yourself off with pay wouldn't that be prostitution You may not wish to employ someone from such a proffesion and end up without a job. Think carefully before opening your mouth.
 




perseus

Broad Blue & White stripe
Jul 5, 2003
23,461
Sūþseaxna
Wouldn't it be better to close down the business, claim benefits as an unemployed employee and then start up the business again, using grants that are available to start-up small enterprises?

Get deducted ten points for that.
 




SAC

Well-known member
May 21, 2014
2,631
As a side-point. I was made redundant and offered to re-apply for a new role. That new role was identical to my existing role but instead of getting overtime if we worked weekends, they wanted us to work any 5 out of 7 days in a week.

Is that legal?

There is a report in the Guardian of some bloke who was made redundant from his job and then told that he had to work there unpaid in order to gain unemployment benefits. http://www.theguardian.com/society/2014/nov/03/dwp-benefits-electrician-work-placement-labour
 






Tim Over Whelmed

Well-known member
NSC Patron
Jul 24, 2007
10,659
Arundel
If you sack yourself via a Disciplinary Hearing you'll have a right to appeal, who will conduct the appeal?
 




Hendrax

Well-known member
Jan 23, 2013
3,744
Worthing
Friend of mine was made redundant, then hired back in a very slightly different role and given another 5k a year on top of the redundancy pay after being there 25 years. I guess it must be legal as it's a fairly big company.
 




seagullsovergrimsby

#cpfctinpotclub
Aug 21, 2005
43,947
Crap Town
Many BT engineers I knew were allowed to take voluntary redundancy and at the time because they were over 50 could receive their company pension too. After 6 months they were able to return to do the same job at BT via an agency. The Inland Revenue eventually decided that BT were sailing too close to the wind on releasing staff with a payout and then using agency labour consisting of ex BT engineers so BT had to close the loophole in April 2003 for all future agency newstarters.
 


piersa

Well-known member
Apr 17, 2011
3,155
London
And get the tax-free redundancy payment, you mean? No.

Hang on - that can't be the motive; if the same person is re-employed without a very decent gap, it's obvious that the role wasn't redundant.

The answer's still "no". What are you trying to achieve? I may have some ideas about how to go about it...

Basically, I am looking for a legal, tax efficient way to get money out of my business.
 


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