An employee was made redundant in June as part of a large restructuring programme.  A member of the remaining team has resigned and we would like to ask the redundant employee to return.  The redundancy was genuine and the needs of the business have changed since June due to the resigntation of a member of the team.

My question concerns the tax treatment of the statutory and enhanced redundancy payments they received.    is it ok to re-engage and for teh epoyee to keep their payemnts?   As there is no clause in the redundancy agreement I don’t think we should (and cannot) ask the employee to forfeit these payments.

I would be grateful if anyone could let me know if there  is anything I shuold be aware of before asking the employee to return as I don’t want to break any HMRC regulations.

Any advice would be appreciated.

Tracey