Can a director be made redundant

Can a director be made redundant

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A client is a director of a company. She has worked full time for the last 12 years and is now leaving. There is a general manager in place who has worked their for the past couple of years and he will be taking over the directors role as well as continuing his own. What criteria are required for the directors final pay to be treated as a redundancy payment? Would she need to resign as a director?
Michelle Radford

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By AnonymousUser
22nd Feb 2006 10:40

Director
You do not state who owns the company. As a director is legally an employee then to be made redundant the directorship would need to end.

However to be made redundant an amployee cannot resign but has to have the employment terminated.

If this a close company owned or controlled by that director then redundancy and any tax free payments would, correctly, be challenged by HM Revenue and Customs.

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By listerramjet
22nd Feb 2006 11:04

director not an employee
it is possible to be a director of a company without being an employee of that company!

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By AnonymousUser
23rd Feb 2006 09:38

director
A person can be a director without being an employee but then of course redundancy would not apply

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