Company in liquidation and redundancy

d0nkeyk0ng
d0nkeyk0ng Posts: 873 Forumite
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edited 19 December 2017 at 8:59AM in Redundancy & redundancy planning
My mother's workplace has closed and gone into liquidation. She was there for 15 years as an employee. Everyone was given two days' notice and my mother was on holiday at the time. She was informed by friends/word of mouth. She's 61 so too young to retire and draw state pension.

What's the next best step?
Can she claim statutory redundancy?
Is she eligible for anything else?

Comments

  • sangie595
    sangie595 Posts: 6,092 Forumite
    There should be an insolvency practitioner / liquidator. she needs to contact them and they will provide the forms she needs to claim payments from the RPS, which can include notice pay, untaken holidays and wages as well as redundancy payments.
  • lulu650
    lulu650 Posts: 1,158 Forumite
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    All info is here for a starting point; https://www.gov.uk/your-rights-if-your-employer-is-insolvent

    A claim can also be made if the employer did not consult with staff but there needs to be 20 employees or more being made redundant.
    Saving money right, left and centre
  • Thanks all. More than 20 people were employed so not a tiny business.
  • The employment tribunal award which would undoubtedly be won would not benefit the OP
    Her length of service payments from the govt fund would exceed any entitlement they would pay on a protected award. The award would be 90 days gross. As memory serves they pay up to a maximum of 8 weeks minus any weeks already paid.
    This award will however benefit people with service of between 2-8 years in general.
    It only needs one person to claim for the group.

    Of course this assumes the liquidation has no assets to pay wages/ET claims etc.
  • Spoken to mum. It was 15 not 25 years, and she still had five days' paid leave left. We've been sent forms from the liquidators for claims.
  • patman99
    patman99 Posts: 8,532 Forumite
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    She needs to start a benefit claim as soon as she can. At least then she will still. Be getting her NI contributions accredited for pension purposes.

    It could take a while for her to get a redundancy payout from the Govt scheme, so she needs to make sure she has money coming in now.
    Never Knowingly Understood.

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  • badmemory
    badmemory Posts: 7,735 Forumite
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    She should get 6 months contribution based JSA so start it online asap. She will get this from the date she starts the online process & will need to do a face to face interview at a later date. She should get 22.5 weeks (untaxed) statutary redundancy too. That is 1.5 weeks per year due to her being over 40 for all the years. The holiday pay should be paid too. Hopefully she should be fine for at least 6 months - probably nine if she's careful.
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