Redundancy/dissolved company

JillyC8

Hi, looking for a bit of advice. The company I work for has suddenly gone into administration and is now dissolved.

We have all been told we will need to apply for redundancy from the govt and it could take six weeks. 

Has anyone had to do this and if so, how long does it take to come through. Would I be eligible to claim benefits meanwhile if needed?

It's all sinking in at the moment so I have lots to think about, but having to wait a long time for redundancy is concerning as I don't have very much in savings, being a low earner.

singhini

im not sure but i did find this GOV information online: Claim for redundancy and other money you’re owed by an employer - GOV.UK Government’s Redundancy Payments Service (RPS) (part of the Insolvency Service)
for:

Statutory redundancy pay (if you’ve worked at least 2 continuous years)

Unpaid wages up to a limit

Holiday pay owed

Statutory notice pay or compensation for loss of notice

(Potentially other elements like overtime/commission depending on your contract)

Looks like you will need a “CN” reference number from the insolvency practitioner handling the administration to make a claim online.

As a practical tip i would apply for UC/JSA as soon as possible,  even if you think you’ll get the redundancy payment because benefits can take weeks to start. I would start a claim immediately to avoid gaps in your National Insurance record.

Hopefully someone else in the know can offer some better advice.

Ratkin007

I don't know about benefits but have heard it said that you should claim for benefits straight away.  I think it is the contributions based benefits job seekers allowance.  
It has been said many people make the mistake of living off their redundancy payment and delay claiming benefits meaning they miss out on those first 6 months. 
I also wonder if your question might be better placed on the benefits board. 

Whiterose23

Yes the govt advises you to claim benefits/jobseekers straight away, then they take it off your redundancy payment.

singhini

Whiterose23 said:

Yes the govt advises you to claim benefits/jobseekers straight away, then they take it off your redundancy payment.

Im not 100% sure, but i think the redundancy might be treated differently if OP is put onto Universal Credit or JSA.

JSA-contribution Based  [i think] your redundancy payment does not affect entitlement if you qualify based on National Insurance contributions.

JSA-Income Based [i think] Redundancy payments count as capital.

If the payment is large enough, it can delay or reduce your JSA entitlement:

Capital of £16,000 or more: you cannot claim income-based JSA.
Capital between £6,000 and £16,000: entitlement is reduced based on the capital.

Capital below £6,000: usually does not affect entitlement.

Certain parts of redundancy are considered capital in the first 8 weeks and may reduce the benefit temporarily.

Universal Credit works differently because it’s means-tested on a monthly basis, considering both income and capital. Redundancy payments are treated as capital rather than income, but with some nuances:Statutory redundancy payments and contractual redundancy payments are ignored for the first month in some cases, but generally count as capital.

If you have capital over £16,000, you cannot claim UC.

Capital between £6,000–£16,000 will reduce UC gradually (i think its £4.35 per month for every £250 over £6,000).

Capital below £6,000 has no effect.

If your redundancy payment is spread over time (e.g., phased payment), UC treats it as income in the month it is received, which can temporarily reduce or stop your UC for that month.



I'm not 100% sure OP but its worth making a claim for benefits and putting in a claim for redundancy