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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 73445
Experience:  Qualified Solicitor
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Thank you for the answer above, my issue is that my employer

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Thank you for the answer above, my issue is that my employer is filing for insolvency, they have not filed yet but they will soon, so what action I should take to protect my rights?

Hello, I’m Ben. It’s my pleasure to assist you today. I may also ask for some preliminary information to help me determine the legal position.

As I cannot see which question this relates to, please remind me of your situation

Customer: replied 7 days ago.
Sure 1 sec please
Customer: replied 7 days ago.
Hi
JA: Hello. How can I help?
Customer: I would like to ask about what I am entitled to if I am made redundant from my work, is it just my redundancy pay, or also 3 months notice for terminating my contract and any remaining holidays?
JA: Have you discussed the termination with a manager or HR? Orwith a lawyer?
Customer: No, I received a letter from my employer stating that all the employees will be redundant as the company will close down, and we should apply for redundancy pay from the government, however the company isn't insolvent
JA: Does the workplace operate with employees, freelancers, consultants, contractors or with unionised employees?
Customer: employees
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no thanks
Customer: replied 7 days ago.
You have kindly replied with the following:
When an employee is made redundant by their employer, they will have a minimum entitlement to receive certain payments. These are as follows:- Notice pay for their contractual notice period, which must be at least as long as their statutory entitlement (1 week’s notice for every full year of continuous service, up to a maximum of 12 weeks). The employer would either have to allow the employee to work that notice period and pay them as normal, or they can decide to pay them in lieu of notice. That is when they are paid for the equivalent of the notice period but their employment is terminated immediately and they are not expected to work through their notice period.- Statutory redundancy pay, which you can calculate here: https://www.gov.uk/calculate-y…- Holiday pay for accrued, but untaken holidays in the current holiday year

Thank you very much for clarifying. If the employer is facing insolvency, most options will be taken put of your hands as they will enter the formal insolvency process prescribed by law.

If an employer becomes insolvent, its employees could be immediately affected as they not only lose their jobs, but may also not be paid what they are due for their wages, holidays, redundancy pay, etc.

Whilst an employee can usually start legal proceedings against the employer to try and recover what they are owed, often such action would be pointless as they are unlikely to have the money or assets to satisfy such a claim, and a claim may also be blocked by the courts whilst the insolvency process is ongoing. You can try to find out if the company is officially insolvent by looking up their information on Companies House:

https://find-and-update.company-information.service.gov.uk

The first step is to contact the company’s insolvency practitioners (the administrators or liquidators) or the Official Receiver to check what is happening with the insolvency and what your rights are. They will know about the financial situation of the company in detail and direct you towards your next steps. Make sure you ask about the CN reference number, if applicable, which will be used to claim from the Government, in the event the company cannot pay.

In that case the Government can cover the following payments:

- Up to 8 weeks' owed pay (capped at a set amount) minus basic rate tax and NI contributions.

- Up to 6 weeks' holiday pay (capped at a set amount) which accrued in the 12-month period ending on the date of the insolvency, minus basic rate tax and NI contributions.

- Statutory notice pay (capped at a set amount) minus basic rate tax.

- Statutory redundancy payment, minus any amount already paid by the employer

The claims process can be initiated online, via the following link:

https://match.redundancy-payments.service.gov.uk/claims/start

If you need further assistance or help with the above form, please contact the Redundancy Payments Service via***@******.***

Hopefully, I have answered your query in a way that is simple and easy to understand. If anything remains unclear, I will be more than happy to clarify it for you. In the meantime, thank you once again for using our services.

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