Redundancy not finalised before company went into liquidation

retropants

I have a friend who has worked for the same company for over 15 years, and was MD for the last few. She became ill last year and was on extended leave until early this year, when she returned on a part time basis as her illness allowed. This summer, she was made redundant (probably as a result of her illness, is this legal?) but the paperwork was not signed by the director (it was signed by her) and then the director put the company into liquidation. She now has no job, and no redundancy payment, when all the other employees have received a payment as part of the liquidation process. Where does she stand, and who can she contact to help? any advice very gratefully received, thankyou.

Johno100

She was the MD but not a director of the company?

She can try and seek Statutory Redundancy, in the same ways the other employees have via the Liquidators and The Insolvency Service, but was she a salaried employee or was she paid via dividends?

sangie595

This isn't entirely clear, but it appears either she was treated as not actually being an employee, or that her redundancy was finalised before the liquidation.(the missing signature is probably not relevant) and so her debt falls into the general category of an ordinary creditor unlike existing employees at the time of redundancy. In the latter case she may never see anything.

But the starting point needs to be asking the liquidator why she didn't get her redundancy - we can speculate for hours, but they are the only people who know the answer. Without that answer it is hard to comment.

As for whether it is lawful to make someone redundant due to a medical condition, well based on the details it's impossible to say. It can be, sort of. But we don't know the circumstances. And they probably aren't relevant at this stage - even if it wasn't, there is no employer to sue for unfair dismissal, so there is no case.