Redundancy - Company in Adminstration and No Consultation

Mentina

Hello,

hubby was made redundant last month. It was very sudden and totally not expected: the company went into administration and slashed 75% of staff without consultation or notice.

He was advised to seek redundancy, arrears, notice period etc from the redundancy payment services (which he did) and he recouped some of money owed. However as the government service is set to a cap, he is still out of pocket as the insolvent company still owe him a large sum for the above.

It has been suggested that he seeks further contribution from the government claiming a protective award via an employment tribunal, but it looks like a costly and painful option and there is no guarantee he will get much.

It also been suggested that he writes to the company to register as creditor, as if the company get sold he might eventually get some money back.

What do you think it is the best way to maximize the chance to recoup the majority of the money? And in the case of having to write to the company, are there standard template (mentioning redundancy legislation or similar) that we could you use?

Thank all

sangie595

If the company is already insolvent then there is no respondent for a case at a tribunal.

You can write and make a claim as a creditor. I wouldn't hold my breath though. The reality is that you are unlikely to ever see any more money.

Mentina

Thank you.

Yes, we know there is a tiny chance to see the money, however our main concern is that the company might start trading again and that they have of course cherry picked the people to keep (without a consultation). My understanding is that these people will also be preferential creditors, in case the company sell the assets or is rescued.

Will write a letter asap to make sure we make them officially aware of hubby's position as creditor.

Do you know, if there is any particular template with laws ect I will need to quotes for this type of cases?

sangie595

Mentina wrote: »

Thank you.

Yes, we know there is a tiny chance to see the money, however our main concern is that the company might start trading again and that they have of course cherry picked the people to keep (without a consultation). My understanding is that these people will also be preferential creditors, in case the company sell the assets or is rescued.

Will write a letter asap to make sure we make them officially aware of hubby's position as creditor.

Do you know, if there is any particular template with laws ect I will need to quotes for this type of cases?

No, you don't need to over-complicate it. Just say what you are entitled to claim and why. However, and this is something I cannot be clear about because I don't deal with the RPS (our employers don't go insolvent - they are local authorities and the like!), you may want to check whether getting a payment at a later stage would mean that you have to repay the RPS. I know that any benefits claimable for the period, whether claimed or not, are deducted from payments made. It is possible that there is something similar that attracts to an employer paying amounts over and above the statutory limit, even at a later stage.

superbigal36

If you go to tribunal you will get awarded the full protective award.
However again that is capped as paid by the government.
I did this and ensured my claim was awarded to everyone in the same boat.
The award was therefore technically 12 weeks x £475 (Current cap) minus (I cant remember but think it is) anything already paid by the govt.
Much therefore depends on your length of service if worthwhile.
It WILL be worthwhile for many employees if they have only a few years service.
I got some amount of thanks/presents as 20+ other people received payments out of the blue for up to £2000ish