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Are family members employed in the family business entitled to redundancy?

  • Member PM.Dip
  • Practice Licence
  • 69 posts
  • # 119769

Hello,

My client employs his daughter and wife in his business, they are his only employees. The business has been hit hard by Covid-19 and there is not enough work for his daughter. Does he have to go through the full redundancy process or does it not apply because she is a family member? My basis for asking is that minimum wage rates don't apply to family members working in the family business, and may be redundancy is the same. It is not her only job, she works outside the family business as well.

The redundancy payment due is minimal and there is no dispute in the family about the redundancy. I'm just looking for the simplest way to handle it.

I have not dealt with redundancy before, so if family members are not exempt from the redundancy process,  all and any hints and tips would be greatly appreciated.

Thanks

Clair

  • Member PM.Dip
  • Practice Licence
  • 3 posts
  • # 119799

Hi Clair

 

It's irrelevent if family members are employed.  What's more important is what employment contract exists between the business and the employee.  If no contract exists then you would need to fall back on the statutory minimums.  If you're unsure about your particular client then I'd recommend speaking to the ICB team or ACAS.

  • Member PM.Dip
  • Practice Licence
  • 69 posts
  • # 119800

>
> Ok, thanks. I think I'll call the ICB.
>

Clair

>
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