severance and a company going into administration

angelstar29

Hi,
My husband got made voluntary redundant through a severence scheme two months ago, one of the terms and condition was his severance pay would be made in instalments, over 8 months, he has recieved one payment and would be due to get the next payment next week, however the company he used to work for went into administration last week, and now we don't know if we would get the other installments or not, he would have lost his job eventually, so when they offered the severance he took it, we have a baby on the way and now i'm just totally worried as we were relying on that money. please help.

anniecave

Was the amount he was due to get just the statutory redundancy amount, or was it more than this? Take a look at the hmrc guidelines if you're not sure.
If it was just the statutory amount, it should have been paid all in one go I would think.

If it was more than the statutory amount, ie an enhanced package, then I think you're unlikely to receive the rest of the money, as you will be a creditor of the company (along with any other creditors).

If the amount received so far is less than statutory redundancy amount, then there's a fund you can claim off.

anniecave

http://www.direct.gov.uk/redundancy.dsb
this link helps you to work out the statutory redundancy amount.

anniecave

the section on the link below

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_10029836

entitled insolvent employers would give you the details of what to do if you hadn't even received the statuory amount.