Directors Redundancy Payments
It is not only employees who are entitled to redundancy pay in the event of company liquidation or closure. A large majority of company directors are also eligible to claim directors redundancy subject to satisfying criteria.
Often when a company fails it’s due to cash flow problems and liquidation is considered an option when all other options have been exhausted. Under these circumstances as a director of the company you might qualify for directors redundancy along with a number of statutory entitlements including notice pay, holiday pay and unpaid wages.
The final settlements are paid direct to you as the director and the payment can be utilised in any way you choose. At what is a difficult time personally and professionally the payment could be used to pay for the company liquidation; to clear personal debts; or used to establish a new business.
Do You Qualify For Directors Redundancy Payments?
- Along with being a director of the company you must also be regarded as an employee.
- You must have been working under a contract of employment for two years.
- Working a minimum of 16 hours per week.
- Owed money by the company this could be initial investment or PAYE arrears.
How To Claim For Redundancy?
Once it’s established that you are an employee of the company and that you meet all necessary criteria. A claim can be made from the National Insurance Fund via the Redundancy Payment Service. If you are unsure if you qualify for director redundancy we can recommend a Specialist Independent Assessor to look over your claim and provide honest and transparent feedback
How much redundancy pay will I receive?
This differs dependent on many factors including length of service; rate of pay and age but it is not unusual to see claims to range from £2,000 up to £10,000 and more in some cases.