Payments in financial distress

Emma Gross, partner at Spencer West LLP considers the tax implications and payments for redundancy when companies are going bust or entering administration

The redundancy process can be sensitive, involving a number of legal obligations and emotional factors for both employers and employees. Redundancy usually occurs when a role is no longer necessary or practical to continue, often due to economic changes, restructuring, or technological developments. Understanding the complexities of redundancy, including redundancy pay calculations, notice periods, and potential alternatives like settlement agreements, is crucial for employers aiming to navigate this challenging landscape while minimising the risk of disputes and legal claims.

Incorrect redundancy pay calculations

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