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Ben Jones, UK Lawyer
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I was made redundant at the end of last year - the company

Resolved Question:

I was made redundant at the end of last year - the company I worked for ceased trading. I am owed £2000 in wages and £1600 in expenses. The liquidator has offered £800. I have been told that I can claim the money by taking out a CCJ against my ex employer? I am not elligible for the government redundancy payment becaus eI have been employed for less than two years ( as have all the 14 employees of the company). Any advice
Submitted: 3 years ago.
Category: Law
Expert:  Alex J. replied 3 years ago.
Hi,

Thank you for your question and welcome.

My name is XXXXX XXXXX I will assist you.

If the company is in Liquidation then I am afraid you cannot make a cannot court claim against the company.

The £800 is the maximum some you receive as a preferred creditor.

The expensive you are owed what do they relate to? You may be able to make a further claim for these as an unsecured creditor.

I look forward to hearing from you.

Kind regards

AJ

Customer: replied 3 years ago.

Expenses are as they say - expenses incurred from work.


Are you sure this applies to English law?

Customer: replied 3 years ago.
Relist: Answer quality.
Expert:  Ben Jones replied 3 years ago.
Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. Have you tried to claim from the Government via the National Insurance Fund?
Customer: replied 3 years ago.

What is the NI fund? As I indicated in the original question I was employed for less than two years therefore I am NOT entitled to access the Government redundancy scheme

Expert:  Ben Jones replied 3 years ago.
This has nothing to do with your entitlement to a redundancy payment. Basically, if an employer becomes insolvent, an employee can generally issue and pursue legal proceedings against them for any money owed. Whilst there may be restrictions on your ability to do so, as my colleague highlighted, whether it is in fact worthwhile suing an insolvent employer is another matter and very much depends on the status of the company and what, if any, money and assets they have left. In most cases, pursuing legal action against the company would be pointless as they are unlikely to be able to satisfy any court judgment against them. So going to court to try and get a CCJ is not usually recommended as the employer is unlikely to be able to satisfy it.

The first step would be to contact the company’s insolvency practitioners (liquidator) to check if it is likely for any money or assets to become available for distribution amongst the company's creditors, including their employees.

If it appears unlikely that the company will be able to cover these payments, employees will also have additional rights to claim through the National Insurance Fund (NIF). The following debts, if owed to employees by an insolvent employer, can be recovered from the NIF:
• Up to 8 weeks' arrears of pay (up to the current maximum statutory limit on a week's pay) less basic rate tax and NI contributions.
• Up to 6 weeks' holiday pay (up to the current maximum statutory limit on a week's pay) which accrued in the 12 month period ending on the date of the insolvency, less basic rate tax and NI contributions.
• Statutory notice pay (up to the current maximum statutory limit on a week's pay) less basic rate tax.

Any claims in excess of the above limits should be claimed from the insolvent employer in the usual way, such as through the insolvency practitioner or through court.

To be able to claim from the NIF, the following conditions must be met:
• Only employees can claim, therefore the self-employed, agency workers, etc are not covered
• The employer must have been made officially insolvent
• The employee’s employment must have been terminated

Assuming the above criteria have been met, the procedure for claiming requires the application to be made to the Redundancy Payment Office responsible for the employer’s area, by using form RP1. To get a copy of the form and for further details, you can contact the Redundancy Payments Helpline on 0845(NNN) NNN-NNNN

I hope this has answered your query. Please take a second to leave a positive rating, or if you need me to clarify anything before you go - please get back to me and I will assist further as best as I can. Thank you and feel free to bookmark my profile for future help:


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Customer: replied 3 years ago.

I will call that number tomorrow and confirm my eligibility. I have been told I am not eligible because of my length of service but I will try again on the number you have given

Expert:  Ben Jones replied 3 years ago.
The service of 2 years is only in relation to your entitlement to redundancy payment. However, you have other money owed to you that does not depend on the length of service and as such how long you have worked there is irrelevant, which is why it is still possible to claim through the NI fund

If your original question has been answered I would be grateful if you could please quickly rate my answer - it only takes a second to do and is an important part of our process. I can still answer follow up questions afterwards if needed. Thank you
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 47340
Experience: Qualified Solicitor - Please start your question with 'For Ben Jones'
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