Hi,
An employee was recently made redundant, due to leave the end of this month.
Her manager has asked if she can come back after a one week break in service - stating she doesn’t need to take a 4 week break in service because she is coming back on a FTC.
Can anyone confirm if this is the case?
Is there any deviation because there is a change from a permanent contract to FTC??
Thank you,
Laura
The issue is that the redundancy has already been agreed and the employee specifically asked to opt out of the selection criteria due to receiving a large package (10 years service). However, her manager gave her the hope there would be opportunities to come back. And told her a one week break in service is sufficient due to coming back on a FTC.
The employees last day is 30 April.
Laura, the reduncdancy may have been "agreed", but that won't bring it into line with HMRC's requirement that for the payments to be tax-free there should be no expectation of further work of any kind for the person to do. There are plenty of instances where HMRC has considered a break of up to 2 months as insufficient because an intention of re-engagement at another site existed.
Just be prepared to have to explain to the person that HMRC would well pursue them for tax on any redundancy payments. Be prepared also for a potential fine.
If you want some certainty, call your HMRC office and explain the situation, asking them to clarify their position.
The only way the manager is right is if it is a very short term Ftc and HMRC do not pick up on it and no other issues arise.
In my experience FTCs drag on (and on)
The only way the manager is right is if it is a very short term Ftc and HMRC do not pick up on it and no other issues arise.
In my experience FTCs drag on (and on)
