redundancy payments

MINKYMOO

Hi - can anyone help with this? In Dec 2011 the company I worked for went into administration and the majority of employees were made redundant a week later. I was kept on to help the administrators get goods out and stayed until the doors finally closed in Feb 2012. I have received redundancy from the government but this was capped. The administrators are now in a position to pay a dividend to creditors but say I am due no further payment but I (and others) earnt more than the capped figure so are we entitled to the difference? Does being kept on make me a preferential creditor?

Any advice appreciated

uknick

I assume when you say the Government "capped" your redundancy payment, it was at the statutory maximum with regard to number of years or weekly amount.

Did all the other employees only get statutory redundancy? If so I don't think there is any chance you can expect anything more.

I'm not aware of employees ever being considered preferential creditors in a winding up, unless they have some form of secured debt against the company.

Finally, when you say they are paying dividends to creditors, do you mean settling outstanding debts?

Again, unless creditors are shareholders, which is rare, they would never get dividends.

MINKYMOO

Thanks for reply - yes was statutory max. I only wondered about being 'preferential' as I saw on a site that if you worked longer than 2 weeks after the company went into administration you were classed as preferential - of course you can't believe everything you read:)

sorry yes I did mean paying outstanding debts at x amount in the pound so there is money 'in the pot' so to speak!

uknick

I wonder if this is what you saw about preferential creditors

Preferential claims include;
* Arrears of wages up to £800
* Holiday pay.

Above taken from this link

http://www.financialcrisis.co.uk/ee22.html