HELP Redundancy issue

Hi, I've been in my current job as an office manager for a finance broker for 18 years now working for 2 equal directors. Sadly one of the directors died last December leaving just the 1 director (who is now 67 and thinking of his options for retirement) and myself. Business was very slow, we were both furloughed and the director had a loan called in that they borrowed in 2008 during the last recession so has been going through a gruelling court case with the creditor not knowing what kind of action they would take on him personally or on the company. We had been talking for a while and both agreed that although business was slow, it was picking up and would be a shame to let go of all the years hard work and loyal customers so with his support and the advice of his legal representative I set up my own limited company, to essentially offer the same services, so if anything happened to the business as a result of the creditor action I had it set up, funding lines in place and access to the customer base, then my director would work with me but on a consultant  basis. This was in March this year, we have split some of the deals in and kept some of the commission in my new Limited company and some in the company I am employed by, no income has been drawn, money is just sat in the bank for when anything happens to my current employment. Skip forward to now, the 1st round of court hearings have ruled in my directors favour and the creditor has 28 days to act if they are pursuing against the company. Having discussed it with my director and his advisor they are potentially looking to voluntarily liquidate so we can appoint our own liquidator etc rather than wait for them to take action , essentially making me redundant without notice. My question is, as there won't be enough funds in the account of the company being liquidated to pay any redundancy it will need to be claimed off the government, will there be any issues in me getting the full redundancy as I've set up another company. It's only been done for my future, not to compete, with the full backing of my director. I'm just worried it might impact on me getting a payout as I've worked incredibly hard and stuck by when I could have just left when times were really tough and this is going to be my nest egg Incase it doesn't work out in my new company.

Does anyone know what the rules on redundancy are in a situation like this?

Any advice would be great
Meet your Ambassadors


  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards