Employees rights to notice pay, holiday pay, arrears of wages and redundancy pay from the Redundancy Payments Service
It is the government who pay the employees the money to which they are entitled when their employer company goes into a formal insolvency process
Insolvency - Liquidation - Administration - An employees right to claim and recover wage arrears & other entitlements from the RPS (Redundancy Payments Service)
An employee of a Limited Company has a right to claim monies owed to him (for arrears of wages, holiday pay, notice pay & redundancy pay) from the Insolvency Service, Redundancy Payments Service ("RPS") , if their employer has gone into Creditors Voluntary Liquidation, Compulsory Liquidation, Administration, or a Company Voluntary Arrangement has been approved. A copy of The Redundancy Payments Services' fact sheet can be viewed by following the link.
What can be claimed by the employee?
The following items can be claimed by an employee from the Redundancy Payments Service: -
- 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.
- and most importantly - Redundancy pay.
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 per week payments made by the Redundancy Payments Service. If an employee is owed more than the RPS can pay, the employee must make a claim as a creditor in the liquidation.
Claims need to be submitted to the Redundancy Payments Service following the appointment of the Liquidator on Form RP1. This along with further information booklets and advice is available from the Redundancy Payments Service detailed as follows:
|Cumbria, Durham, Yorkshire||Ladywell Road|
|Cleveland, Tyne and Wear,||Edinburgh|
|Merseyside, Northumberland,||EH12 7UR|
|Tel: 0131 316 5600|
|All London Boroughs,||PO Box 15|
|Essex, Hertfordshire, Kent||Exchange House|
|Surrey, Sussex, Suffolk,||60 Exchange Road|
|Devon, Dorset, Gloucestershire|
|Tel: 01923 210 700|
|All other counties in England||Hagley House|
|83-85 Hagley Road|
|Tel: 0121 456 4411|
For advice on your entitlements and rights as an employee to claim arrears of wages, holiday pay, notice pay an redundancy pay from the Redundancy Payments Service (RPS) when your employer has become insolvent you should telephone the above numbers.