creditors voluntary liquidation
  members voluntary liquidation
  compulsory
liquidation
  company voluntary
arrangements
  administration orders
  administrative receiverships
  law of property act receivers
  directors disqualification
  don't do this
  controlling the liquidator
  section 652
  employees
  the prescribed part
       

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An employee of a Limited Company can claim monies owed from the Department of Trade and Industry's, Redundancy Payments Office, if the employer has gone into Creditors Voluntary Liquidation, Compulsory Liquidation, an Administration order has been made against it, or a Company Voluntary Arrangement has been approved.

What can be claimed?

The following items can be claimed by an employee from the Redundancy Payments Office: -

  • unpaid wages or salary for up to eight weeks.

  • holiday pay for days not taken, but due under employees contract, up to a maximum of six weeks.

  • Compensation in lieu of receiving statutory notice.

The statutory minimum periods of notice are as follows:

  • One week for continuous employment for more than one but less that two calendar months.

  • One week for each year of continuous employment for more than two years but less than twelve years.

  • Twelve weeks if you were in continuous employment for twelve years or more.

- Statutory redundancy payments, depending on age and length of service.

To receive a payment for redundancy an employee must have had at least two years continuous employment since the age of 18 and are based on age and length of service as follows:

For each complete year between age 18 and 21 an employee will receive half of a week's pay.

For each complete year between age 22 and 40 an employee will receive one weeks pay.

For each complete year between age 41 and 65 an employee will receive one and a half weeks pay.

A maximum of 20 years service will be counted for redundancy purposes.

For all payments there is an upper limit of £240 per week for payments made by the Redundancy Payments Office. If an employee is owed more than RPO can pay, the excess the employee would need to make a claim as an unsecured creditor in the liquidation.

Claims need to be submitted to the Redundancy Payments Office following the appointment of the Liquidator on Form RP1. This along with further information booklets and advice is available from the Redundancy Payments Offices detailed as follows:

SCOTLAND Ladywell House
Cumbria, Durham, Yorkshire Ladywell Road
Cleveland, Tyne and Wear, Edinburgh
Merseyside, Northumberland, EH12 7UR
Teeside  
  Tel: 0131 316 5600
   
   
All London Boroughs, PO Box 15
Essex, Hertfordshire, Kent Exchange House
Surrey, Sussex, Suffolk, 60 Exchange Road
Bedfordshire, Berkshire, Watford
Buckinghamshire WD1 7SP
Cambridgeshire, Cornwall  
Devon, Dorset, Gloucestershire  
Northamptonshire, Oxfordshire  
Somerset, Wiltshire  
  Tel: 01923 210 700
   
   
WALES 7th Floor
All other countries in England Hagley House
  83-85 Hagley Road
  Birmingham
  B16 8QG
   
  Tel: 0121 456 4411
   
   
FREE HELPLINE 0500 848489
 
www.dti.gov.uk/er/redundancy/insolvency-pi718.htm