Directors Redundancy

Most Directors are not aware that they could be eligible for a redundancy payment from the Government when their company closes through a formal process of liquidation.

This redundancy, along with other statutory payments such as holiday pay and unpaid wages is paid from the government’s National Insurance Fund and can provide a much-needed financial boost at a very difficult time. Not only can it pay for the liquidation itself (often the liquidators fees can be deferred until the redundancy claim is processed) but it can sometimes leave a lump sum for the director to clear any personal debts or start another business. It is a common misconception that Directors have no right to claim redundancy but just like any other employee (regardless of your shareholding or ownership of the company) you may be eligible to claim, so best to check, especially if there are no available funds to pay a liquidator.

Redundancy Calculator
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Things to be aware of:

Redundancy payments would normally be met by the company, but if the business is insolvent and unable to meet its liabilities the Redundancy Payments Office will administer the claim instead, and pay the money from the National Insurance Fund.Very few Directors are unaware of their statutory entitlements when they close their company, and thousands are missing out on substantial payments (these are subject to your individual circumstances and not all Directors will qualify) from the National Insurance Fund.The average redundancy claim for directors is over £9,000Our panel of licensed Insolvency Practitioners all recognise the redundancy process for directors, and work with us and Redundancy Claims UK in processing the claims on behalf of the directors. We ensure that all fees are deferred by the insolvency practitioner for the liquidation until the redundancy comes through.Early advice is key. Taking action after your company is liquidated could prevent you from claiming your statutory entitlements either in part or in full that you are entitled to.

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Or email us at

info@thedirectorsthelpline.org

Alternatively...

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Very few Directors are aware of their statutory entitlements when they close their company, and thousands are missing out on substantial payments (these are subject to your individual circumstances and not all Directors will qualify) from the National Insurance Fund. The average redundancy claim for directors is over £9,000. Our panel of licensed Insolvency Practitioners all recognise the redundancy process for directors, and work with us and Redundancy Claims UK in processing the claims on behalf of the directors. We ensure that all fees are deferred by the insolvency practitioner for the liquidation until the redundancy comes through. Early advice is key. Taking action after your company is liquidated could prevent you from claiming your statutory entitlements either in part or in full, so ensure you know all your options before liquidation.

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