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Redundancy & Liquidation

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jmcdyre
jmcdyre Posts: 157 Forumite
edited 23 June 2011 at 7:10PM in Redundancy & redundancy planning
Hi all
I'm asking this question on behalf of my dad.
His employers have gone into liquidation, today was his last day, and the government is to pay statutory redundancy AND payment in lieu of notice.
My dad can probably find a new job starting next week but his question is: if he got a new job would either of the government paid redundancy or PILON not be paid (or reduced by the amount of his new wages)?
Thanks in advance, have searched hi and lo for the answer but couldn't find it

Comments

  • SarEl
    SarEl Posts: 5,683 Forumite
    Actually he may not have done. And I would be wary of any definitive advice - which you won't be getting from me! If he hasn't been given formal notice then the company being in liquidation may not have yet terminated his contract, because there is a chance that the liquidators are seeking to sell off the company intact and that would very probably include "selling" the employees with it (TUPE). My advice if at all possible would be to delay the start of the new job for a week or two and get "down and dirty" with the liquidators and get absolute clarity on his position (just say he is seeking work and wants to know what happens) preferably in writing. He needs an absolute assurance that his contract has been terminated without prospect of re-employment under TUPE. If he can get this he should receive his payments in full as they are legal rights.
  • jmcdyre
    jmcdyre Posts: 157 Forumite
    Ok thanks for your reply.
    Just so I understand then, as long as he is definitely not employed with no possibility of being employed by the company, he will be entitled to the agreed PILON and redundancy payments if he finds a new job.
  • jmcdyre
    jmcdyre Posts: 157 Forumite
    I checked the insolvency service website and it says if you work, or claim JSA during the statutory PILON period, then these amounts would be deducted from the PILON - apparently it's only paid as damages, so if you work you reduce the amount of those damages. Fair enough I suppose.
  • SarEl
    SarEl Posts: 5,683 Forumite
    Yes - but this would happen if you left your employer early under notice of redundancy too. Assuming he is still within the relevant notice period. Or has even entered it. So the point here is to be utterly sure that he has even been terminated for definite - it is not unheard of for workers to be invited back to work the week after they were sent home "redundant" becasue somebody has bought the company and kept the workers. So he needs to be very sure that termination is final.
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