Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Cayenne
    • By Cayenne 9th Oct 19, 12:59 PM
    • 1Posts
    • 0Thanks
    Cayenne
    Advice on what to do
    • #1
    • 9th Oct 19, 12:59 PM
    Advice on what to do 9th Oct 19 at 12:59 PM
    Hi all - first time post here.

    I am in a strange situation and I am not sure what the best thing to do is:

    1. I have worked at the same company for 13 years now and it is pretty well paid for the area.
    2. The business is struggling and I have not yet been paid this month (October 2019). Wages have been late in the past, but the business does not have any guaranteed income due at the minute, although longer term, it could be ok (in 6 months or so).
    3. The boss has said the business *may* close, but he is not sure (some type of insolvency I presume.

    My questions are as follows:

    1. The business will not be able to afford redundancy and I know I can claim this from the governments Insolvency Service - how long does this take?
    2. I am stuck in a catch 22 - I can't resign and take up other paid work before a decision to make the business insolvent because I will miss out on redundancy - is this true?
    3. I have looked at benefits I can claim if i get made redundant this month and it only amounts to around 73 a week - does this sound right? I have very little savings (almost none - got divorced earlier this year and had to setup on my own again) and no other sources of income.

    Any help anyone can give would be really appreciated!
Page 1
    • lincroft1710
    • By lincroft1710 9th Oct 19, 2:31 PM
    • 12,226 Posts
    • 10,799 Thanks
    lincroft1710
    • #2
    • 9th Oct 19, 2:31 PM
    • #2
    • 9th Oct 19, 2:31 PM
    You can resign and take up a job offer if you have one. Redundancy is there to help out the finances until you find another job. It is not an ex gratia payment in recognition of how many years a person has worked for an employer.
    • tacpot12
    • By tacpot12 9th Oct 19, 2:40 PM
    • 2,906 Posts
    • 2,629 Thanks
    tacpot12
    • #3
    • 9th Oct 19, 2:40 PM
    • #3
    • 9th Oct 19, 2:40 PM
    Don't know how long the redundancy takes to be paid via the insolvency service, but if you call their helpline on Telephone: 0330 331 0020 (Monday to Friday, 9am to 1pm) they should be able to tell you.

    You will miss out on the statutory redundancy pay which will be 13 weeks of pay at least for you.

    If you are made redundant, you might get more than 73 a week. This depends on whether you have a partner who is earning, whether you have children and if you rent you home or are buying with a mortgage.

    There is a good benefits calculator at Entitledto.co.uk. You can plug in your details as they will be if you are made redundant to find out what you are entitled to. Redundancy payments are not taxed and treated as capital for means-tested benefits so you shouldn't lose any benefits due to receiving a redundancy payment, UNLESS the payment is more than 6000 in which case you will start to lose some benefit, and if the redundancy payment is more than 16,000 it will stop you being entitled to any means-tested benefits.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • MovingForwards
    • By MovingForwards 9th Oct 19, 5:29 PM
    • 2,378 Posts
    • 2,807 Thanks
    MovingForwards
    • #4
    • 9th Oct 19, 5:29 PM
    • #4
    • 9th Oct 19, 5:29 PM
    Another thing to consider is if your employer goes bump, how many of you are all going to be looking for a job at the same time?

    Is it worth hanging on to get redundancy and then find another role? Or would you be better off forgetting about any statutory redundancy and finding another role sooner than later?

    I'm assuming you haven't got 3+ months wages saved.

    Obviously if you have got a safety net, can find a similar role in next to no time and will wait to see what happens with your employer / stat redundancy pay then maybe hang on.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

153Posts Today

1,997Users online

Martin's Twitter