Redundancy advice please
 

my work sadly went into administration this week, we were advised we were out of a job with immediate effect. At this stage I'm waiting on a letter coming through that supposedly has my reference number/details to begin the redundancy pay process, this is being done through the government.
I know for my age I can claim one weeks pay for each year of service (8 years). My question is, on top of this can I claim for this months wage which we are not getting paid and also the minimum notice period of one month which we obviously did not recieve?
its not that clear to me where I stand, in 20 years I have never been in this position, nevermind at fecking Xmas :confused:
I'm extremely lucky that I have already secured a new job starting in January.
Thanks in advance.

I'm really sorry for your news, especially at this time of year.

Can I get some clarification on what you've said.

You state that the company is in Administration - this implies that the company is continuing to trade - is this not the case (as all the workforce are being let go).

Redundancy again is implying that the company is still trading?

If this is the case then your recourse should be through your employer and not through the government scheme (as the business is still about to pay it's bills).

If the company is going into liquidation, then the company simply ceases to exist and your contract becomes void - and then you should seek a claim through the govt.

Best bet would be to have a read here:
https://www.gov.uk/your-rights-if-yo...r-is-insolvent

I'd call the CAB on Wednesday to get a better understanding of where you stand.

As you have been let go within 14 days of the administrator being appointed (implied in your post) you are an ordinary creditor and line up with the other creditors to claim against your former employer. Had they waited for more than 14 days you would be deemed a priority creditor, and get dealt with ahead of suppliers etc.

As BlkKnight has stated, it is important you understand whether the company is in administration ( administrators appointed to try to keep the business running ) they may achieve this by cutting its OpEx costs by letting some staff go (although normally those with less than 2 years service go first), or liquidated, in which case the business is gone and its assets get sold off to try to settle outstanding debt with creditors.

If you are to receive redundancy money and it’s calculated at the statutory rate it will be a max of £489 per complete year of service

A new company has been formed with the profitable parts of the old company. KPMG were in our offices and advised all redundancy should be claimed through the government as there was effectively no funds to cover this in the short term. The oldco has stopped trading with immediate effect.

Bad news at this time of year or any time if not expecting it.
Glad to hear you have a new job lined up.
Enjoy Xmas
Next year is a new chapter for you so good luck

Glad you got a new job.

As Blkknight said, yougov have great advice :thumb:

kpmg as in the construction design outfit?

No KPMG are one of the top four auditors.

edit:

Seated in Amstelveen, the Netherlands, KPMG employs 189,000 people and has three lines of services: financial audit, tax, and advisory.

kmpg

Peat Marwick McLintock became KPMG Peat Marwick McLintock in early 1990

My wife worked for them in the early 90s, international accountants.


Sound like your company is doing a phoenix manoeuvre.

Sorry to hear your situation. By the sounds of it, the owners (by taking the profitable parts of the business and starting up again) have royally shafted it's loyal workforce. No doubt when they knew the end was near, syphoned off whatever money was in the bank account into their own. Guess they'll be having a very happy Christmas this year?


Glad you've got a new job sorted for January. Just hope it's not with the new company that's been formed? If they shafted you once, they'll shaft you again.

If you have been made redundant and the company has no money, then you won't get statutory redundancy I'm afraid, you will get a proportion of whatever funds are left, which may be very little. Government certainly won't make up any difference either.

I think you can get it (or some) from the government. Have a look at Yougov

So much pish being spouted on this thread (as always)

Sorry to hear that 97 Turbo. Sadly as sign of the times. Sometimes businesses just fail.

You can claim to the rendundancy payments service (who will pay you what is due subject to the following and irrespective of the financial position of the insolvent comany) for:

1) Unpaid wages and salary for up to 8 weeks

2) Redundancy (assuming more than 2 years service). Its essentially 1 week per year to a maximum of 12 weeks with a multiplier above a certain age/number of years based on your weekly equivalent salary.

3) Compensation for failure to receive statutory notice. 1 week if you've worked for between 1 week and 2 years and 2 weeks plus an extra week for each year you’ve worked if you’ve been employed for 2 years or more (to a maximum of 12 weeks)

4) Up to 6 weeks holiday pay.

All of the above are calculated on your actual pay or £489 per week (whever is the lower)

You can also claim for unpaid pension contributions

The notice payment is compensatory and therefore anything you earn in your notice period (or could have claimed in benefits if unemployed) will be deducted from what the government pays you.

Redundancy is tax free. The rest will be subject to a deduction of tax at the basic rate.

If you have any problems, call KPMG. The insolvency practitioners apponted to deal with the administration are obligated to help you with the claims process.

Come on James, you're smarter than that.

It doesn't matter if the company has no money if its gone into a formal insolvency process. The government pays the statutory amounts due to employees and then itself makes a claim in the insolvency.

Employees can make their own claim for anything due over and above the statutory amounts and only those additional claims will be dependent upon what is left.

Correct, but its irrelevant in this context as the maximum statutory redundancy payment is 30 weeks, so the current max redundancy payment by the Insolvency Service is £14,670.

Statutory redundancy payments for employees of insolvent employers is therefore all tax free :thumb:

Specifics are key here, you don't know who is reading for help

Hi folks, thanks for all the replys. I will try to explain this clearly to help with any further advise.

So, I was made redundant with company A, then the following day offered a job with company A(newco), I turned this job down as it was reduced terms etc, very vague job description.
I have since started with company B who are completely different outfit and in no way connected to my last employer.
I have today recieved a letter from the Insolvency Service stating they are "investigating a possible company transfer and this may hold up redundancy claims" :confused:
Now, the questionaire I've to return to them is a little confusing, its asking if i have a new job and if so, to give employer details, start dates etc...however all the following questions suggest they are talking about Company A(newco).

carefull what you say here, you may end up with nothing they have offered you another job, so long as it involves less than 1 hours travel and was reasonably affordable to you, you have just set yourself for a fall, i had this back in feb when my place of work closed and moved 56 miles away, it was considered unreasonable so i could of took the money and ran, but they offered me more money promotion and a company car so i couldn't refuse, but sometimes on the way to work wish i had, seek legal advise before you even toutch that form even if its only the cab

They are investigating a potential TUPE transfer situation. As I said, pm me if you want any help with this. You are still protected whatever happens, so don’t worry about that