What You Need To Process A Redundancy Or A Leaver
When processing a redundancy or a leaver, it is essential you complete the process as efficiently and effectively as possible and ensure the situation is handled correctly. For many employees, being made redundant is a very emotional and difficult time. You should, therefore, do everything in your power to ensure redundancy and leaver processes are handled flawlessly.
Here is a guide to completing redundancy/leaver processes…
1. Establish A Leaving Date
An employer and employee must agree together on a leaving date. Usually, the last day of the month is a suitable date as it ensures the final pay of an employee is straightforward to calculate.
2. Calculate Their Final Pay
You must then calculate the final payment of an employee, taking into consideration any bonuses, holiday days and redundancy pay they are owed. You must not ask or allow an employee to work overtime once their final pay has been calculated, as this will cause the final pay sum to be incorrect.
3. Clearly Communicate The Final Sum
You should provide the employee leaving your company with a statement of their final pay, with a clear breakdown of each element of the pay, e.g. final wage and redundancy pay. This will avoid any confusion and ensure there is complete clarity for the employee leaving your company.
4. Contact HMRC
Once an employee has left your company, you must notify HMRC with a 'Full Last Payment Submission' and issue the employee with a P45,
Should I Outsource My Payroll Services?
Processing redundancies and leavers can be very time-consuming, especially on top of all other day-to-day payroll tasks. For this reason, many people choose to outsource their payroll services. This allows businesses to focus on their core business pillars, and provide their employees with accurate and reliable payroll services. Outsourced payroll services, for example, can process redundancies and assist with furloughing employees.
Contact eSlip Payroll Services
If you are interested in cost-effective payroll services that can free up more time for your company, and ensure all payroll processes are handled promptly and correctly, do not hesitate to contact eSlip Payroll Services today.
We can help you with everything from allocating SSP and can even provide you with free P45s. To learn more about outsourced payroll services you can rely on, get in touch with eSlip Payroll Services.
For immediately advice call us on 01279 851000 or you can click here to make an enquiry.
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