Made redundant - Company Insolvent
Discussion
So the company i have worked at for the last 4 years went into administration and was made redundant 2 weeks ago.
From what i understand i can claim from the Government:
Redundancy - 4 weeks capped at £643 = £2572
i was not paid for the last week(paid weekly), as paid 1 week in lieu, so do i claim that as an additional £643?
although a payslip was raised and submitted to HMRC - can i claim some tax back, as would be taxed on my usual £827/Week?
Holiday pay, im owed 19 days holiday. It says i can claim £643 per week, how would this be worked out for 19 days?
Statuary notice pay, so 4 weeks notice for 4 years service = £643 X4 = £2572.
Im also owed around £5K into my pension, which has not been paid into for some time, even though its been deducted from my salary. I have been told this will be paid from the National insurance fund? but can find no reference to this online?
I already have a new job lined up, i assume i can start this ASAP without effecting any of the above?
It looks like to claim any of the above i need a reference number from the administrators, but after 2 weeks ive had no letter's etc, other than a P45!
How long should this take?
So anyone been through this, and able to answer/verify any of the above?
Cheers
From what i understand i can claim from the Government:
Redundancy - 4 weeks capped at £643 = £2572
i was not paid for the last week(paid weekly), as paid 1 week in lieu, so do i claim that as an additional £643?
although a payslip was raised and submitted to HMRC - can i claim some tax back, as would be taxed on my usual £827/Week?
Holiday pay, im owed 19 days holiday. It says i can claim £643 per week, how would this be worked out for 19 days?
Statuary notice pay, so 4 weeks notice for 4 years service = £643 X4 = £2572.
Im also owed around £5K into my pension, which has not been paid into for some time, even though its been deducted from my salary. I have been told this will be paid from the National insurance fund? but can find no reference to this online?
I already have a new job lined up, i assume i can start this ASAP without effecting any of the above?
It looks like to claim any of the above i need a reference number from the administrators, but after 2 weeks ive had no letter's etc, other than a P45!
How long should this take?
So anyone been through this, and able to answer/verify any of the above?
Cheers
Sorry to hear you've been made redundant.
Have you been in contact with the Administrators employee team? They should be providing you all the answers you need.
In essence, you have a claim for a number of things (notice, holiday etc.) and some of this can be preferential and some just normal unsecured.
As you correctly say though, in the majority of cases you claim from the redundancy payments service. https://www.gov.uk/claim-redundancy to speed things up. They aim to make a payment within 2 weeks but at most 6 weeks from the date the claim is sufficient. The 'cap' on the RPO limits doesn't stop you making a claim against the company for the rest, it just limits the amount you get paid quickly.
The administrator not giving you the required info by now is pretty poor - this can be done within the first couple of days of the admin - is it a large or tin-pot firm?
The pension issue is a little more complicated - and rather risky for the Directors if it's been going on for some time. The best online guidance is on the link below - but I can't emphasise enough that this information should be coming from the Administrators team - it's what they are there for and they should have been helping your through this (including having prepared a FAQ, given all you previous colleagues will have similar questions)
https://www.gov.uk/government/publications/redunda...
Have you been in contact with the Administrators employee team? They should be providing you all the answers you need.
In essence, you have a claim for a number of things (notice, holiday etc.) and some of this can be preferential and some just normal unsecured.
As you correctly say though, in the majority of cases you claim from the redundancy payments service. https://www.gov.uk/claim-redundancy to speed things up. They aim to make a payment within 2 weeks but at most 6 weeks from the date the claim is sufficient. The 'cap' on the RPO limits doesn't stop you making a claim against the company for the rest, it just limits the amount you get paid quickly.
The administrator not giving you the required info by now is pretty poor - this can be done within the first couple of days of the admin - is it a large or tin-pot firm?
The pension issue is a little more complicated - and rather risky for the Directors if it's been going on for some time. The best online guidance is on the link below - but I can't emphasise enough that this information should be coming from the Administrators team - it's what they are there for and they should have been helping your through this (including having prepared a FAQ, given all you previous colleagues will have similar questions)
https://www.gov.uk/government/publications/redunda...
sleepezy said:
Sorry to hear you've been made redundant.
Have you been in contact with the Administrators employee team? They should be providing you all the answers you need.
In essence, you have a claim for a number of things (notice, holiday etc.) and some of this can be preferential and some just normal unsecured.
As you correctly say though, in the majority of cases you claim from the redundancy payments service. https://www.gov.uk/claim-redundancy to speed things up. They aim to make a payment within 2 weeks but at most 6 weeks from the date the claim is sufficient. The 'cap' on the RPO limits doesn't stop you making a claim against the company for the rest, it just limits the amount you get paid quickly.
The administrator not giving you the required info by now is pretty poor - this can be done within the first couple of days of the admin - is it a large or tin-pot firm?
The pension issue is a little more complicated - and rather risky for the Directors if it's been going on for some time. The best online guidance is on the link below - but I can't emphasise enough that this information should be coming from the Administrators team - it's what they are there for and they should have been helping your through this (including having prepared a FAQ, given all you previous colleagues will have similar questions)
https://www.gov.uk/government/publications/redunda...
Thanks, Its a small company with around 10 employees. Have you been in contact with the Administrators employee team? They should be providing you all the answers you need.
In essence, you have a claim for a number of things (notice, holiday etc.) and some of this can be preferential and some just normal unsecured.
As you correctly say though, in the majority of cases you claim from the redundancy payments service. https://www.gov.uk/claim-redundancy to speed things up. They aim to make a payment within 2 weeks but at most 6 weeks from the date the claim is sufficient. The 'cap' on the RPO limits doesn't stop you making a claim against the company for the rest, it just limits the amount you get paid quickly.
The administrator not giving you the required info by now is pretty poor - this can be done within the first couple of days of the admin - is it a large or tin-pot firm?
The pension issue is a little more complicated - and rather risky for the Directors if it's been going on for some time. The best online guidance is on the link below - but I can't emphasise enough that this information should be coming from the Administrators team - it's what they are there for and they should have been helping your through this (including having prepared a FAQ, given all you previous colleagues will have similar questions)
https://www.gov.uk/government/publications/redunda...
I highly doubt there will be anything of any value left as they were selling anything of value to pay our wages over the last few months!
I hear several hundred thousand is owed to HMRC and covid loan, bank loans etc.
So there will be no funds to claim from other than from the government.
Will try and chase up the administrators for info.
Went through this a year ago almost to the day.
Without the reference number there's not a lot you can do so chase this up as a priority. Once you have it there's a fairly straight forward online form to complete. It asks for all the details length of service, wage etc along with details of any owed pay and any holidays owed. The redundancy service then confirm this with the administrator. In my experience from claim to pay out was only a few weeks.
On the form there's a box to tick to say if you wish to also claim for loss of notice. You can't actually claim for this until the notice period would have passed at which point the redundancy service will email you and again there is a simple online form to fill in.
Without the reference number there's not a lot you can do so chase this up as a priority. Once you have it there's a fairly straight forward online form to complete. It asks for all the details length of service, wage etc along with details of any owed pay and any holidays owed. The redundancy service then confirm this with the administrator. In my experience from claim to pay out was only a few weeks.
On the form there's a box to tick to say if you wish to also claim for loss of notice. You can't actually claim for this until the notice period would have passed at which point the redundancy service will email you and again there is a simple online form to fill in.
So now nearly 6 weeks after being made redundant, and still not had the required documents to be able to claim the redundancy etc!!
Having chased both the employer and the administrators, ive now finally found the root cause of the delay!
So apparently, as there are no cash or worthwhile assets left, the director is personally liable for the administrators costs/charges, and the director who is financially up s
t creek cannot currently pay them. I believe he is trying to raise some funds, but sold most things to keep the company going in its last few months!
So until he can pay the administrators, they won't start these processes. And the company still shows as active on company's house.
Is there anything i can do here? what if he cannot pay? or goes bankrupt?
Having chased both the employer and the administrators, ive now finally found the root cause of the delay!
So apparently, as there are no cash or worthwhile assets left, the director is personally liable for the administrators costs/charges, and the director who is financially up s
t creek cannot currently pay them. I believe he is trying to raise some funds, but sold most things to keep the company going in its last few months!So until he can pay the administrators, they won't start these processes. And the company still shows as active on company's house.
Is there anything i can do here? what if he cannot pay? or goes bankrupt?
I was in a similar situation, the company was still "trading" just with no staff, or working product. The owner claimed he had no funds to sort the insolvency.
Took him to employment tribunal and won on every point. I wasn't expecting to ever receive any payment from him, but thought it might help going forward.
It has taken 18 months to get a compulsory wind-up order through, so finally I can start claiming for at least something.
Good luck!
Took him to employment tribunal and won on every point. I wasn't expecting to ever receive any payment from him, but thought it might help going forward.
It has taken 18 months to get a compulsory wind-up order through, so finally I can start claiming for at least something.
Good luck!
Edited by page3 on Thursday 19th October 14:33
V8 Stang said:
So now nearly 6 weeks after being made redundant, and still not had the required documents to be able to claim the redundancy etc!!
Having chased both the employer and the administrators, ive now finally found the root cause of the delay!
So apparently, as there are no cash or worthwhile assets left, the director is personally liable for the administrators costs/charges, and the director who is financially up st creek cannot currently pay them. I believe he is trying to raise some funds, but sold most things to keep the company going in its last few months!
So until he can pay the administrators, they won't start these processes. And the company still shows as active on company's house.
Is there anything i can do here? what if he cannot pay? or goes bankrupt?
I'm fairly sure the Govt. pays the stat redundancy pay if the Employer can't. A cousin of mine wa smade redundant a few years ago and I think had something like 15 years service. he got it all paid, PLUS his notice period plus his unpaid wages.Having chased both the employer and the administrators, ive now finally found the root cause of the delay!
So apparently, as there are no cash or worthwhile assets left, the director is personally liable for the administrators costs/charges, and the director who is financially up s
t creek cannot currently pay them. I believe he is trying to raise some funds, but sold most things to keep the company going in its last few months!So until he can pay the administrators, they won't start these processes. And the company still shows as active on company's house.
Is there anything i can do here? what if he cannot pay? or goes bankrupt?
So nearing 4 months later and I've finally had the CN reference number from the administrators!
I got excuse after excuse from both the administrators and director.....
Have now put the claim in for the statuary redundancy pay, holiday pay and unpaid wages. Looks like i have to wait for another link to claim the loss of notice pay.
Lets just say its lucky that i had some funds while finding a new job!
Hopefully the RPS is a bit more efficient and it does not take another 4 months to receive payment.....
It does state it should be paid within 6 weeks.
I got excuse after excuse from both the administrators and director.....
Have now put the claim in for the statuary redundancy pay, holiday pay and unpaid wages. Looks like i have to wait for another link to claim the loss of notice pay.
Lets just say its lucky that i had some funds while finding a new job!
Hopefully the RPS is a bit more efficient and it does not take another 4 months to receive payment.....
It does state it should be paid within 6 weeks.
Be careful as I’ve just had 90% of my claims refused, as the schemes will only pay out for the 12 months prior to the liquidation.
Mine took 14 months, so I only get unpaid wages (only 8 weeks capped and total capped). I had expenses, pension, holiday, redundancy, notice, awards all rejected due to the time frame.
Mine took 14 months, so I only get unpaid wages (only 8 weeks capped and total capped). I had expenses, pension, holiday, redundancy, notice, awards all rejected due to the time frame.
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