Redundancy & Start Up Advice

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S

storageman

  • #1
    The company I'm currently working for as recently gone into administration with most employees including myself being told that we are to be made redundant receiving the government statutory redundancy. Myself and two colleagues are considering starting our own limited company, we understanding that we are untitled to 12 weeks lieu of notice but understand this won't be received until the 12 week period is complete, My question is, how will this payment be affected by earnings by the new company?

    Many Thank's
     
    S

    storageman

  • #4
    Thank you both for your replies, I understand it won't affect my redundancy payment it is the separate payment of lieu of notice which I'm lead to believe will be adjusted/amended in accordance to earnings/allowances i.e. job seekers allowance received, that gets deducted from the final payment meaning the final payment could be substantially reduced.
     
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    B

    Business Spy

  • #5
    Hi,

    I think you need to speak to ACAS and Business Link who can advise you on both separate issues.

    With regard to redundancy, I believe they have to pay you one weeks notice for every year you worked there up to a maximum of 12 weeks - but I may be wrong.

    Good luck :)

    Nancy
     
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    D

    Dave Shaw

  • #6
    You have a duty to mitigate your pay in lieu of notice claim and theoretically any money earnt in the new company would be set off against it. The redundancy payment service will usually assume, at the very least, you are entitled to job seekers allowance. They may take a different view if you have set up a company and can control your salary during the notice period and refuse to pay - you would then have to go to a tribunal to make your claim.

    the website financialcrisis.co.uk has some useful calculators and information.

    David Shaw
    totalitysolutions.com
     
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