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Old 18th September 2018
Jim Ford Jim Ford is offline
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Re: Political: We're doomed, Captain Mannering...

Originally Posted by Naughty Nigel View Post
In answer to Harold's question, there are two reasons why businesses cannot or will not re-employ redundant workers. The first is that redundancy payments are tax free, therefore HMRC stipulate that redundant workers must not return to the same employer within (IIRC) 2 years unless tax is paid.

The second, more obvious reason is that the new employees will be earning less than those that they replace, although employment law says that you cannot recruit new staff to fill the places of redundant workers for a certain length of time.
In redundancy it's not the employees that are redundant, it's the position they fill. It's the job that's redundant, not the person doing the job. That's why employers can't declare someone to be redundant, and employ someone else to do the same job.

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