IHTM28250 - Liabilities: investigating liabilities: redundancy payments

You may allow a deduction for lump-sum redundancy payments payable under the Employment Rights Act 1996. This applies to payments

  • for which the deceased was liable but which had not been made at the time of death, or
  • for which the personal representatives became liable as a result of the death.

Although the second type of deduction arises because of the death it is treated as a liability of the deceased employer, as if it was incurred immediately before the death. This is because an employee바카라 사이트™s employment is treated as terminated by the death of the employer under the employment rights legislation. The deceased바카라 사이트™s personal representatives are required to make a redundancy payment to any employee they do not offer to re-engage within eight weeks of the death.