I am an accountant and a long standing client bought a tea shop on his retirement, one year ago, believing that it would give him an interest and a small income. The three shop staff were given P45’s by their previous employer and a new PAYE system was commenced. My client retained all three staff but has not given them contracts of employment.

One year on and the business has made no profit and my client has known for some time that he is over staffed. Can he make one of the staff redundant and if so how much notice should he give? Also would he have to pay any redundancy money?

I would appreciate any help you can offer.

Thank you

Maz
Maz K