Redundancy pay if company goes bust

The_Blue_Hatter

If my company goes bust naturally there will be no redundancy coming from them. Is someone fibbing to me when they said the government will give me some statutory redundancy?

TBH

viv0147

That is correct the government will give you statutory redundancy the full amount due. I know this for a fact it has happened to me twice.

The_Blue_Hatter

I suppose it will be a small bonus then if the worst happens, thank you!

michaels

It is capped at about 400 quid a week and thus not necessarily the full amount due - also you may be out of pocket for wages not received and you will definitely not get pay in lieu of notice.

mjm3346

Direct Gov have a calculator to work out what you get (needs age, gross weekly pay and years worked)

http://www.direct.gov.uk/redundancy.dsb

celler

In these cicumstances,what happens to wages owing,holiday owing and notice period money?

getmore4less

I find it usefull to seek out info from both sides

Here is a link that tells insolvency practitioners what they should do about employees pay and redundancy.

http://www.insolvency.gov.uk/guidanceleaflets/redundancypayments/guideforips/guideforips.htm

This one aimed at employees
http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10026695

celler

yes cheers for the links was sure i read somewhere that those 3 were covered to some degree upto 380 per week by the looks depending on new income.
So as i read it if the money cant come from the assets it comes from the insurance fund its something at least.

chipmunk

michaels wrote: »

It is capped at about 400 quid a week and thus not necessarily the full amount due - also you may be out of pocket for wages not received and you will definitely not get pay in lieu of notice.

I did, and holiday pay. I got the maximum weekly allowance (think it was £380 if my memory serves me correctly) capped at maximum of 20 years service (I did 28)

zppp

celler wrote: »

yes cheers for the links was sure i read somewhere that those 3 were covered to some degree upto 380 per week by the looks depending on new income.
So as i read it if the money cant come from the assets it comes from the insurance fund its something at least.

On winding up a company, this is the insolvency practitioner will do to pay off creditors. They will realise any assets (apart from encroahed assets such as a van on HP for example), and pay off:

1. Secured creditors
2. Themselves for their fees and Crown debts
3. Employees (Statutory redundancy)
4. Floating charge holders (creditors which have secured status but not on a specific asset)
5. Unsecured creditors
6. Shareholders
7. If there is anything left, it will go to the Crown. This is very unlikely.

Sometimes the amount owed in Crown debts (unpaid tax etc) and the amount secured can consume the company's whole asset base, so the government will make the statutory payments in the absence of the company being able to.

Lip_Stick

michaels wrote: »

It is capped at about 400 quid a week and thus not necessarily the full amount due - also you may be out of pocket for wages not received and you will definitely not get pay in lieu of notice.

Wrong - I got all that was owed to me including unpaid wages, holiday pay and PILN.