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Are Home Workers Entitled to Redundancy?

By: Emma Eilbeck BA (hons) - Updated: 26 Nov 2020 | comments*Discuss
Employment Redundancy Home Work Wage

There are many different types of employment and it is important to determine what type of employment you have in order to know what redundancy payment, if any, you are entitled to.

Working from home allows you to work independently and not have the burden of commuting into work every day, but it can also be an isolated existence and cut you off from any benefits that other employers may be entitled to.

Determining Your Employment Status

You may work part-time, full-time or be self-employed when working from home. You will need to determine whether you are classed as an employee in order to calculate any redundancy pay. It is possible to receive a regular wage from a company but not be classed as an employee. If you are classed as self-employed for the purposes of tax you will normally be classed as self-employed in the eyes of the law.

In most cases you will be classed as self-employed if your employer deducts tax and National Insurance from your pay automatically, also if you receive sick pay, holiday pay and maternity leave.

You will also be seen as employed if you work exclusively for them and have a contract or written confirmation from your employer stating that you are employed.

If you are not classed as employed you will not be entitled to any redundancy payout from your employer if they do decide to make redundancies.

If you are on their books for tax purposes and are classed as an employee but working from home, this should not make a difference when your employer is choosing people for redundancy. You should also receive the same payout as you would be entitled to if you were working in an office.

Different Types of Home Work

There are those that solely work from home and those that divide their time between the home and the office. Generally those that work from home fall into two categories, there are those that can work from home because of the job they do, which normally involves computers, or those whose work is more manual and requires them to say at home.

It is usual for part-time workers to split their time and work some of their time from home and the rest in the office. Part-time workers should always be treated in the same way as full-time employees when it comes to redundancies. You will still need to check your employment status though as some part-time workers may work on a freelance basis or do agency work, if you do either of these you will not qualify for a redundancy payout. If you are part-time though on an employment basis you should receive the same benefits as other workers in the company.

When it comes to working from home it is important that you receive the same benefits as those that are working in the workplace. Some home workers will not be on the firm’s payroll so not qualify for the same benefits and redundancy. But if you have an agreement with your employer that means you can work from home and still be classed as an employee, then you should still receive redundancy.

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What happens with the computer equipment belonging to the company at home, after my wife has been made redundant
Jwk18 - 26-Nov-20 @ 11:21 AM
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