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05 January 2012

will working as self employed affect the right to redundancy pay

I'm not sure this is really 'tax' but apart from 'rip offs' nothing seemed appropriate. the business (dance school (A)) my friend worked part time for has closed and she thinks she's entitled to a significant redundancy payment. she currently works 2 days a week as a secretary for NHS and some months ago (due to hours cut at the dance shool (A)) started to run a dance class one afternoon a week on for herself. she advised the tax office of this. if she takes additional work (as self employed) for about 3 hours a week will the dance school (A) be able to refuse to pay her any redundancy payment entitlement. the problem here is this work would be helping/teaching with one of the partners from the dance school (school A) which has closed but who is starting her own new dance school (school B) but I understand she remains a partner in school (A) until the partnership business ends in May. The other partner (in dance school A) has said that if my friend is employed to work in school B she will not get any redundancy payment from school A. This is the same man who told my friend he was 'taking her off the books' about a month before she found out about the closure of the school (A) - she asked why and he said he'd leave her as employed is employed the operative word here, rather than self employed when she could invoice school B for her time at a few hours a week we are not talking mega bucks, but we don't want to ruin her chances of any redundancy payment very hard earned and well deserved but she has to eat! I don't know why the partnership is still in is existence, maybe something to do with premises lease which runs to May? my friend has no contract of employment. if you have managed to wade through all this and kept up, thank you and even more so if anyone can give any help or advice. thanks.

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