SE13810 - Termination payments and benefits: redundancy: re-engagements: general

Provided that a redundancy is genuine (see SE13800), subsequent re-engagement by the same employer or an associated employer does not normally affect the treatment of a redundancy payment.

However, if the re-engagement:

• is essentially to the same duties and
• as an employee and
• without apparent commercial justification (such as real variations in work availability)

submit the case with full facts to Personal Tax (Technical), Solihull .

Another type of more indirect “re-engagement” may occur when an employer outsources part of the business to another concern. Consequently, its own employees in that part are made redundant within the definition in SE13800. They may become employees or agents of the concern that takes that business, but no action is needed regarding the redundancy payment unless the arrangement does not appear genuine (for example, the business and concern are associated and the work is moved with the employee). Submit such cases to Employment Income Technical.