Redundancy rights
Question
I've just been made redundant, with immediate effect and thought I would be entitled to redundancy pay. My employer has told me I'm not entitled to anything because they've gone bust. Is this true?
Answer
Your entitlement to redundancy pay depends on your age and length of service with your present employer. Usually this payment would come from your company but in your situation where the company has gone 'bust' (insolvent) you may still be able to get your entitlement from the government through the National Insurance Fund (NIF).
It's possible your employer not only owes you redundancy pay but also some of these:
- Basic pay;
- Holiday pay;
- Bonuses and commission;
- Overtime;
- Pay in lieu of notice;
- Maternity pay;
- Compensation awarded by an employment tribunal;
- Sick pay.
You may also be able to claim some of these from the NIF but the amounts are limited. The Department for Business, Enterprise & Regulatory Reform (BERR) have a section on their website dealing with all issues around redundancy. For more detailed help and advice you can call Acas on 08457 474747.
You can also make a claim to the liquidators or receivers and become a creditor of the company. You may also want to read the booklets produced by the Insolvency Service on the subject.
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