Check if you can apply for redundancy payments as a company director

YouEmployees mustare belegally anentitled employee to becertain eligiblepayments forwhen redundancythey payments.are made redundant.

AsThese youinclude:

• redundancy werepay
• compensation afor companyany directorunpaid andnotice officeperiod
• any holder,money wethey willare askowed youby sometheir questionsemployer about(for yourexample directorshipunpaid whenwages, youholiday)

When submitan youremployer application.enters Thisa willformal helpinsolvency usprocess, confirmthese yourpayments statusare asmade anby employee.

Wethe willInsolvency considerService, yourwithin claimcertain if:statutory limits.

• you

  Eligibility

  Only hademployees awho contractare ofmade employment,redundant writtenare memorandumentitled orto otherpayments agreementfrom thatthe reflectsInsolvency yourService.

  A workdirector, situation.who Ifis youan dooffice notholder, havecan aalso copybe ofan aemployee writtenand agreement,be weeligible mayfor askpayment.

  Directors youapplying to provide details of the termsInsolvency andService conditionsfor ofmonies yourowed employment

• youwill receivedneed paymentsto underprovide aevidence PAYEto scheme

Informationsupport youtheir willclaim needthat tothey completewere youran claim

ReadThe ourInsolvency redundancyService paymentswill factsheethave forto informationconsider youwhether needthere towas providea whencontract youof submitemployment yourin claim.

Asplace youat werethe atime director(which ofcan thebe company,express weor implied).

Additional information will askbe youasked for informationbased abouton your directorship,circumstances including:and may include:

• whetherthe youstructure wereof alsothe acompany shareholder in terms of directorships and shareholders
• the companylast 3 years’ P60s
• howthe muchlast you3 earnedmonths’ fromwage yourslips
• employer’s employmentbank overstatements for the last 312 taxmonths years,to beforereview youregularity wereof dismissed.payments
• a Youcomparison canof findthe thiscontracted informationhours onbeing yourclaimed P60sin relation to the work being undertaken
• whether youthe earnednational less than minimum wage inwas paid
• a copy of the lastcontract 3of years.employment Weand willwhether sharethe informationterms onof potentialthe Nationalcontract Minimumwere Wageenacted
• dividends misconductreceived within ourthe investigatorslast 3 years
• holiday pay arrangements
• workplace pension arrangements
• sick leave procedures
• grievance and HMRCdisciplinary procedures

How to apply

IfThere youare havetwo beenapplication paidforms.

Use lessour thanprimary Nationalapplication Minimumto Wageclaim money if your employer owes you maya alsoredundancy needpayment toor applymoney like wages, holiday and commission. Your employer must be unable to HMRCpay you, for example because they’re insolvent.

You do not need to provide usextra withinformation about your employment history.status with your online claim.

IfThe Insolvency Service will contact you intendafter toyou submit a claim and explain what we need.

Claim for loss of notice pay

The wesecondary mayapplication alsois askfor you:compensation for loss of notice pay.

• whether

  You youdo werethis responsibleapplication forlater, startingafter discussionsyour withnotice period ends. You must complete the insolvencyprimary practitioner,application andfirst.

  If ifyou not,apply tofor provideloss detailsof notice pay, the Insolvency Service will again ask you for additional information. This can include:

  • information about who started discussions with the directorinsolvency whopractitioner wasabout responsiblethe formal insolvency
  • the date when the insolvency practitioner was contacted
  • the date when the insolvency practitioner advised that the company should goenter into a formal insolvency process

  RedundancyIf paymentsyour directorclaim assessmentis processrejected

  OnceThe Insolvency Service will reject your claim and not make you any payments if we cannot confirm that you were an employee of the company.

  If you disagree with the decision, you can also make a claim to an employment tribunal.

  You have received3 months from the date of your completedrejection application,letter weto maymake requesta documentationclaim to supportan employment tribunal, unless your claim.claim Weis mayrelating askto redundancy pay (as opposed to holiday pay, arrears of pay or loss of notice pay).

  There is a different time limit if your claim includes redundancy pay, which is usually 6 months from the date of your dismissal.

  Before you can make an employment tribunal claim

  You must first tell the Advisory, Conciliation and Arbitration Service (Acas) that you intend to go to tribunal.

  If you do decide to go to tribunal, you’ll be asked to provide contact details for evidencethe including:person or organisation you’re making a claim against (‘respondent’s details’).

  • wage

    You slips

  • dividendsshould received
  • companylist accountsboth your former employer and bankthe statements
  • P60s
  Secretary of State for Business, Energy and Industrial Strategy as respondents.

  For the Secretary of State:

  The Secretary of State for Business, Energy and Industrial Strategy
  The Insolvency Service

  
  RPS Employment Tribunal Section
  PO Box 16684
  Birmingham
  B2 2EF