I am about to shut down my manufacturing joinery business. It has been in operation for 26 years, but for the last six years we have not been doing well. I am about to have my 69th birthday. Although I had investigated selling the business, it isn't a good proposition for investment, so instead I have found employment at another company and hope to work for a couple of years before retiring. My questions are about severance pay.
I have six members of staff. One is past retirement and took his retirement package four years ago. He is starting to forget things and so is not really employable anywhere else. Another person has taken early retirement, and works when he feels like working.
There is one person who has 20 years service and is not ready to retire, and the other three are recent employees.
The company that is employ me agreed to interview all staff for potential employment, but no-one turned up for an interview and it seems they may be wanting severance pay according to their years of service.
The company has an overdraft, but other than that and current debtors there are no commitments. Staff will be paid up to shut down, they will get their leave pay, and depending on the state of the coffers, a bonus.
Now the questions:-
Am I right to say that the retired staff don't have any claim to severance pay?
If they don't even appear for an interview, can they insist on severance as well?
They all seem to be making plans to withdraw their provident fund, without looking for further employment. Does this change anything?
I look forward to responses.
Frank
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