Redundancy

[Boozilla]

Hi there,

I'm slightly confused and wondered whether someone could clear this up for me?

We have employed a nanny for about 9 months and I understand that a nanny employed for more than 2 years must receive a redundancy package if you let them go.

Our finances are slightly dicey and should it become an issue that we decide we cannot afford a nanny any more BEFORE that 2 year period am I right in stating that I can just give the notice period outlined in her contract plus sorting out holiday etc.?

If we are just finishing the role for financial or non-misconduct related reasons rather than dismissal is it automatically reduncancy?

Yes, Redundancy Pay only kicks in once someone has had 2 years of service (see BusinessLink: Making An Employee Redundant)

Prior to that, contract is terminated as per the usual way though it is still called making them redundant (write that on the letter you give them confirming that the job is coming to an end, so then JobCentre Plus knows that they haven't just been sacked).

If you decide to end the contract but are then going to use another nanny instead, that then isn't redundancy but is just a termination of contract with notice.

See BusinessLink: Process to follow when a worker leaves

Least that's how I understand things.

And the light bulb goes on!

Thanks so much nannynick, that's cleared that up totally for me. So redundancy as a term can still apply but it's just the redundancy package that does not kick in until 2 yrs.

Yep, they're still redundant (their role does not exist any more as you are using alternative childcare/whatever) but you don't have to pay them.

If you're still going to use home based childcare do give them first refusal on the new hours/salary/conditions as they might be very upset if they would have agreed to the new conditions given the option. I heard a story about a nanny recently who was made redundant and then the family got a nanny for shorter hours which original nanny would have been perfectly happy to agree to for personal reasons... I vaguely remember her going to the CAB to see if she was entitled to the new job but can't remember what the outcome was if I knew.