Will I get my redundancy pay?

[Jemma askin]

Hi, I'm hoping someone can shed some light on what's going on.
I was made redundant in June from a ltd company. Was unaware this was going to happen, the insolvent practitioner turned up on the morning informed the 10 of us working that the company was unable to carry on in the company voluntary arrangement, gave us forms Rp1 to fill in along with a letter of redundant commencing with immediate effect. I had worked there for 12 years. Three weeks later I receive a letter from the insolvency service rejecting my claim as my ex employer is not insolvent. I rang insolvency service to be told that although they would be able to pay us as company was in CVA they were unable to as they hadn't received relevant form RP14a. I then ring IP they tell me they have sent it, this goes on for the next two weeks, insolvency service insisting they haven't received it and in the meantime the company are now in breach of the CVA and the IP have sent a letter to creditors inviting them to a meeting in the next 28 days otherwise they will petition to put the company into liquidation. The insolvent service has now advised me to go to the employment tribunal, I have now done this and submitted a claim. Does anyone know what are my chances of redundancy pay?

Thanks for reading

 

[Scalloway]

HMRC guidance on redundancy and insolvency is here

http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_178525

 

[sjbeale]

If you go to an employment tribunal you will get basic redundancy pay from the government's insolvency fund.

 

[Jemma askin]

Thanks for the replies

 

[Robert Moore]

Don't worry if the company is put into liquidation you will get redundancy pay as per the statutory amount. Lieu of notice claims can be made as well but these will be adjusted if you get another job. Also make sure you sign on as again the compensation will assume you have claimed entitled benefits.

Finally govt is not known for moving fast so it could be 6-8 weeks before you see the money AFTER the company has gone into liquidation

 

[Jemma askin]

Thank you so much for your reply. My main concern is how long it could go on if one of the creditors object to the liquidation. Also if I win the case at tribunal will the insolvent service pay out to me straight away or will I still need to wait for liquidation? Also I am applying for a basic award for no consultation period but am unsure if I will be awarded it because there were only 10 made redundant.

 

[Alan R Price]

Can't the IPs just send a copy of the RP14A to the RPO? That would seem the most sensible way forward.

 

[Jemma askin]

It is too late to send the RP14A to the RPO as the CVA is breached and no longer in place which is why the RPO have advised me to go with the ET1.

 

[Alan R Price]

It is too late to send the RP14A to the RPO as the CVA is breached and no longer in place which is why the RPO have advised me to go with the ET1.

I don't doubt what you say, but the line taken by the RPO simply defies logic. The CVA is proof of the company's insolvency - it is a formal procedure under the insolvency legislation. I can't see what the ET can do, except make an award against an insolvent company that cannot pay you. What a waste of taxpayers' money! I suspect they have simply told you that because the circumstances don't tick any of their boxes and it's a default response: "We don't know what to say so we'll recommend going to the ET."

You do say however that the company is likely to go into liquidation, so you can make your claim to the liquidator in due course. Once the company is in liquidation, the liquidator will write to all employees inviting claims and he will then submit their completed RP1s on their behalf. This will, unfortunately, involve additional delay but you should get your entitlement eventually.