Employer liquidated, holiday pay?

the182guy

Hi all,

The short story is in September 08 the company that I worked for (been with them 14 months) went into liquidation. However, about 6 months or so before this, they started a child company. This child company is still operating now with a lot of the staff from the liquidated parent company (including the director).

The company sent me my redundancy form which goes off to the Gov (I think). This form was mostly already filled in for me by them, such as the amount of holidays owed, which they had written 0.

I still had 14 holidays to take until the end of December 08 at the time. So I crossed this out and sent a letter along with my form explaining everything. I then got a phone call from the person that is dealing with the liquidation saying they had contacted the director and yes I am owed holiday pay.

Today I received a letter saying my claim has been approved and money will hit my bank within 4 days - great!......... until I looked at the figure.

The figures say £376.20. Then it is taxed and I have paid NI on this and the final figure is £278.58. Even if they gave me the first figure net, that would only account for about 4 days pay. My salary was £20,000 so would I be right in assuming my daily pay would be approx £76 before tax?

One other thing in the letter, it says "There is a limit on how much we can pay you. The limit applicable for your claim is £330.00 per week."

As far as I am aware this money is coming from the Gov rather than the liquidated company.

I don't really have any idea of my rights or what I could claim in this situation, I hope someone here can help.

Many thanks!

ceridwen

Sounds like they are getting confused between holiday pay and redundancy pay. There is a weekly limit to the amount of pay that redundancy pay can be based on (if one is getting the statutory legal minimum). As far as I am aware there isnt a limit on how much holiday pay one can get - someone who knows the law better might be along to help with this soon - but I would assume that you are entitled to whatever holiday pay you are entitled to (based on your actual salary) AND your redundancy pay as well.

the182guy

Thanks ceridwen,

In addition to the 0 next to holiday pay on my form, I was told that because I had only been there 14 months I was not entitled to any redundancy pay - which I believe is fair enough.

I am tempted to just leave it and accept the payment to be honest. At least I got something, I'm a couple hundred quid better off than if I had accepted it in the first place.

Vancat

Don't think there's any mistake; my daughter is also claiming through the Redundancy Service for notice pay and holiday pay after her company went into administration and then folded early December.
The max amount they(Redundancy Service, i.e. government) pay is £330 pre Feb or £350 after Feb, per week, even if you were earning £600 a week!
They also use the statutory level of notice due; my daughter was contractually entitled to 1 month notice. But as she'd only been with the company 7 months, the stat. amount is 1 week's notice. And that is all the RS will pay...up to a max of £330 (now £350) a week!
They calculate the rate exactly the same as unpaid redundancy pay, i.e. up to a max amount per week, regardless of your higher earnings. Then they tax and NI it, then, I'm almost sure they even deduct JSA, which they do tell you you must claim.
For what it's worth, they received my DD's form on 7th Jan, (I checked), and they still haven't even sent an acknowledgement of her claim.
I called them yesterday, to chase it, only to be told their system would be down until next Tuesday, and could I call back then!
VC

the182guy

Thanks Vancat,

But even so, it still doesn't add up, 14 days holiday would be 2 working weeks and 4 days so why have they capped it at £330 before tax? Shouldn't it be 2 x £330 + 4days?

Vancat

Hmmm....I'd have thought so too...are you sure this wasn't your notice pay of 1 week that they've paid, and they've still not paid any holiday pay? I can't work those figures out either...did they not give you their calculation?
I seem to remember that there was something in the notes for completing the forms, that only a certain number of days could be claimed for holiday pay....If I were you, I'd give them a call at the Redundancy service and ask them...They may still owe you!
This looks like 1 week's salary £384.62, , less JSA for 2 days Don't know how old you are or what your rate is, but you could work that out....that's pretty near your figure of £376.20 isn't it? (you don't get JSA for the first 3 days...)
And if that's right then they do indeed pay "actual" salary for notice pay instead of the statutory maximum...interesting....
At least you have received something from them....my DD is still waiting for a reply..., and has given up getting anything from them!
VC

shelly

Vancat wrote: »

They calculate the rate exactly the same as unpaid redundancy pay, i.e. up to a max amount per week, regardless of your higher earnings. Then they tax and NI it, then, I'm almost sure they even deduct JSA, which they do tell you you must claim.

They don't deduct JSA from any payment you are owed.

Vancat

Happy to be corrected Shelly ; I was just passing on the info that the Redundancy Service told me in December, when completing daughter's claim form.
I will ask them to clarify again. I think they said something about a compensatory award for unpaid notice, if given at a tribunal, which would then have JSA deducted.
Sorry if I've confused OP!
VC

shelly

Vancat wrote: »

Happy to be corrected Shelly ; I was just passing on the info that the Redundancy Service told me in December, when completing daughter's claim form.
I will ask them to clarify again. I think they said something about a compensatory award for unpaid notice, if given at a tribunal, which would then have JSA deducted.
Sorry if I've confused OP!
VC

I'm sorry, I hold my hands up and say I am wrong.

I was getting redundancy pay confused with notice pay. I have just found out my paperwork from the insolvency service and I did indeed have a weeks worth of JSA deducted from my notice pay.

Also looking at the booklet they gave us when the company I worked for went into administration, they will deduct any benefits you are entitled to even if you don't claim them so its best to claim all you are entitled to.

Vancat

Lol...no problem, that's both of us confusing the poor OP now! I've just tried calling the Redundancy Service.....they have an automated reply on saying they are closed until tomorrow due to the work load!:eek:

the182guy, I'd still try to call them tomorrow and get clarification on what they've actually paid you, you may find there's holiday pay still to come, which would be nice!
VC