smallbusiness.co.uk: Helping your business think big

Short-term finance

Rory Earley, CEO of Capital for Enterprise, explores the options...
Have your say »

RSS

Q: I am self-employed and have employed a member of staff for about 18 months. I can no longer afford to do this, what can I do? Can I make him redundant?

Mar 18 2008

Answered by: Marc Barber Ask a question

Yes, it is reasonable for a business to resort to redundancy if a job will no longer exist due to lack of funds. However, you are advised to go through the redundancy consultation (which is a two way process) before you make the dismissal.

If you have other members of staff you should consider whether they should be in the affected pool of employees with the person you mention in your question. This would be the case for example, if they shared work.

You will find support on the BERR website by clicking here and will be relieved to find that there is no redundancy compensation for employees with less than 2 years service.

Comments

There are currently no comments on this article

Mentoring – Now there’s a bright idea for business

Whether you're starting up, taking your business to the next level or just need a sounding board, Lloyds TSB understands that a business mentor can offer you the support and guidance you need to develop your business. Find out more today.

Compare business insurance quotes

Tailor your policy, compare quotes and buyin minutes! Up to 50% No Claims Discount. Public and Employer's liability, Professional Indemnity, Business premises (also for home based workers) and more! Compare quotes now or call 0845-0723340 today.

Compare Insurance quotes for Employers Liability

Employers’ Liability insurance covers you and your business against claims from employees injured at work or taken ill as a result of working for you. Compare Insurance quotes for Employers Liability to ensure your business can cover claims without compromising its financial stability.

Polls

Human resources Questions & Answers

Entrepreneurship

Ed Percival, Shirlaws Binfield Ask a question

Advice for employers

Peter Done, Peninsula Ask a question

Human Resources

Cecily Lalloo, Embrace HR Ask a question

News

smallbusiness.co.uk: Helping your business think big

Apprentices are making the most of their opportunity

Apprenticeships proving effective for SMEs

Britain’s apprentices are getting promoted, improving their confidence and taking on more responsibility in the workplace, according to a report.

Calls to address sickness absence

The government is being urged to reinvigorate its efforts to tackle sickness absence.

Jobs outlook promising for SMEs

The short-term jobs outlook has ‘turned positive’ for the first time in more than a year, research finds.

Job vacancies rise

The number of new job opportunities in April has increased year-on-year.

Promising job creation for SMEs

The UK labour market saw job vacancies increase by 9 per cent in the first quarter of 2012, a study reveals.

Businesses plan recruitment drive

Some 80 per cent of small and medium-sized enterprises are planning to hire over the coming six months, research finds.

Youth Contract scheme launched

A £1 billion initiative that aims to tackle youth unemployment has been launched by the government.

Good weather blamed for sickies

The number of employees who called in sick today is treble the count for the whole of last week, research finds.

SMEs bullish for 2012

UK businesses are feeling confident about increasing revenue and headcount in the year ahead, finds research.

TUC: tribunal fees will harm lowest-paid

Many of the UK's lowest paid workers will be unable to enforce their workplace rights if proposals for employment tribunal fees go ahead, says the Trades Union Commission.

Employees could exploit new HR ruling

Small businesses should prepare for employees looking to claim back annual leave after becoming ill while on holiday, says an employment specialist.

Guides & Tips

Make sure you get your HR right from the start

HR for start-ups – how to get it right

Margery McBain, MD of Gravitate HR, outlines the key human resources considerations for a small business owners starting up.

The new fit note might create more pain for businesses

Getting fit for business

Fit notes are set to replace sick notes next month. Neeta Laing, head of employment law at Lewis Hymanson Small, explains how the system will work.

Using HR techniques could be the solution to managing your staff

Managing employees

Whether you are looking to increase staff development or need some quick-fix help, there are a range of HR solutions available.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.