There is a lot of confusion in the domestic employment industry on the issue of redundancy. Many housekeepers, butlers and other domestic staff along with their employers assume that because of the unique circumstances that exist in domestic employment, they do not qualify for redundancy pay. But providing they meet the requirements they are entitled to redundancy pay just like any other employee. In order to qualify for redundancy your employee needs to have been in continuous employment for at least 2 years. To qualify they must be 18 or over and have at least two years continuous employment. This means that they must have been working for the same employer, without any breaks, apart from maternity, sickness and unpaid leave, for at least two years. They must also be working under an employment contract and have a PAYE scheme set up. This does not mean that they need to have a written contract, as some employers unfortunately don't provide this.
If the employer's circumstances change and they no longer have a full-time job for their employee and they want to employ them on a part-time basis, they are required to first offer the "new" position to the existing employee. If they choose not to continue working for them under the new conditions they are still entitled to redundancy pay, unless they are on a fixed term contract. Your employee will also qualify for redundancy pay if the household moves to a different part of the country, providing there is no relocation clause in the contract. How much your employee is entitled to depends on their age. Please see current rates and thresholds for the most up-to-date redundancy rates. As the employer you are free to pay more than the statutory minimum at your discretion. No parts of the costs can be claimed back from the state. Your employee does not have to pay tax on redundancy payments up to £30,000. |
Employers 
