Resignation & Liquidation
- Thread starter minnehoma
- Start date
If you are an employee of a company which enters an Insolvency process then you can claim from the Redundancy Payments Service for any amounts that you are owed (subject to statutory limits). You state in the OP what would happen if you hand in your resignation. If you hand in notice of your own resignation then you would not be entitled to redundancy, if that's what you mean when you said severance pay.
Its worth noting that director/shareholders, claiming to be employees, have to provide more supporting information compared to an employee before their claim would be paid out.
Its worth noting that director/shareholders, claiming to be employees, have to provide more supporting information compared to an employee before their claim would be paid out.
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- Original Poster
- #3
Apologies, my reference to severance pay is that I understand if the company doesn't enter into insolvency process I work my 3 months notice on full pay. If they do enter insolvency during this period my contracts states 3 months notice period, does that become null and void? Would I be entitled to nothing?
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In respect of notice, the RPS pay lack of notice as a compensatory award. Additionally, the RPS will only pay the statutory entitlement to notice, not contractual. Again, this is limited to statutory weekly pay limits (Currently £643 per week).
The statutory redundancy notice periods are: at least one week's notice if employed between one month and 2 years. one week's notice for each year if employed between 2 and 12 years. 12 weeks' notice if employed for 12 years or more.
Once the statutory notice period expires you have to submit a new form to the RPS to advise them what income you had during the period of your unpaid notice.
The statutory redundancy notice periods are: at least one week's notice if employed between one month and 2 years. one week's notice for each year if employed between 2 and 12 years. 12 weeks' notice if employed for 12 years or more.
Once the statutory notice period expires you have to submit a new form to the RPS to advise them what income you had during the period of your unpaid notice.
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Not if you have voluntarily left the company of your own accord instead of being made redundant...
FYI The Redundancy Payments Office is clamping down on directors who claim as employees unless they were paid a 'proper' wage.
Many directors paid themselves the minimum annual amount of c£11/12k in order to be under the tax threshold but the RPO will now get you to agree that in those circumstances they paid yourself less than the NMW, which is against the law and therefore convinces a director not to claim.
FYI resigning as a director will not prevent you from being investigated by the Insolvency Practitioner btw.
Are you the sole director?
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