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Sudden closure of business and disgruntled employee

I really have been thrown in at the deep end! One of the companies I work for has closed due to the non renewal of the lease. We were trading fine for 10 years and just could not agree to the new terms from the new owners...end of story we couldn't trade any longer.

As a result we have had to inform 5 employees and I would really like some help!

One is part time and been with us for 10 years so we will offer her the part time job share in our other business as we have a member of staff who needs to reduce her hours due to anxiety and stress this kills two birds with one stone.

One handed her notice in 3 days before we closed I have been advised by ACAS 

2 are on maternity one has been with us for 4 years the other 3 years both get SMP and their redundancy 

All have been great and been really supportive 

I have one who hasn't been so and understandably is upset but she just won't rest from contacting me throughout the day.

Her employment started on 6th Aug 18 she was paid up to date in full on the 31st Dec 18 she gave us a sick note for a month then text and said she was coming in to do light duties, then we informed her the shop had closed and we would be in touch asap I concluded she would be entitled to a week paid notice as she hadn't worked for over 2 years with us. She then rushed back to the GP and got another sick note dated 3rd Jan and is now asking about us honoring her sick pay for the rest of the month......???

We had a facebook post she made over christmas which we haven't addressed as the lease issues took over and by the time we discussed it or I was told about it it was the day we sent out the notices (2nd Jan)

She is now telling me we have treated her unfairly as EVERYONE has been given jobs in our other business (untrue) and she is seeking advice. 

My question is how do I deal with this lady? She keeps telling me her personal situation of being a single parent and 2 horses to feed...... what more can I do other than suggest she gets another job? 

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  • Hi Lauren

    Have you formally dismissed the two-horse employee with due notice and pay?

    As far as I can make out, that’s what ought to happen - obviously as regretfully and respectfully and sensitively as is possible.

    Apart from (unlikely?) *unlawful* discrimination being alleged, there would appear to be little or no possibility of redress once this has happened, however loudly she may protest etc

  • I think your only real risk for a successful claim from anyone is over failure to consult. You probably could have consulted earlier as the direction of travel of the lease negotiations became clear. But given her service I am not sure she can bring this claim. 

    Apart from that as David says there is little real risk. You have no obligation to pay the extended sick note period. You just need to be firm but polite to this ex-empkoyee making it clear it’s over.

  • In reply to Keith:

    We really didn't know about the closure as we were in talks with them for 3 months and suddenly it just wasn't moving forward and the choice was taken out of our hands, it's devastating I can't even begin to go into it but it's happened and we have to move forward.

    She was sent an email on the 2nd explaining the closure and we would be in touch asap as we needed the accounts to be looked at by our accountants to work out where we stood financially on paying our staff, suppliers or whether we need to go insolvent, I didn't want to make promises we couldn't keep without the proper advice first I still don't know where we stand on this and wont until next week.

    Does anyone know about insolvency and paying staff? or how long the process takes?



    Thank you
  • In reply to David:

    Hi David

    No at this point we haven't told her she will be getting a weeks paid notice, I have been waiting for my accountants to let me know where we stand, the email we sent on the 2nd said we will be in touch to inform them as soon as we know where each of them stand. I have explained this to her lots of times and that she will get what she is entitled to, but she wants more.

    Should I inform her now of her entitlement and please bear with us on the payment? is there a limited period in which we pay her? I know the minute I say it she will be banging the door down to be paid but I need to ensure they are all treated the same!
  • In reply to Lauren:

    Hi Lauren

    All depends on what's in her contractual terms and conditions as regards payment during periods of sickness - eg company sick pay provision or SSP only - and whilst still an employee, that must apply.

    Any contractual t and c regarding dismissal and particularly redundancy dismissal processes will be relevant too.

    It seems you need to formally tell her that her job is at risk of redundancy because of..........(outline what’s happened) and as a consultation process invite her responses then as soon as you are able dismiss her with due notice and notice pay (seemingly one week).

    ( treating all the affected employees the same isn’t required or even appropriate - this employee only has short contnuous service, so no statutory unfair dismissal or redundancy payment etc rights. You should treat her in accordance with statutory and contractual provisions and then at your employer’s discretion add anything more that’s felt appropriate / fair on an ex gratia basis)

    But by all means at this stage  outline to her what’s likely to happen when you go through what’s in para. 3 above.