Redundancy help?

So it looks like the company I work for is going into administration forced by HMRC. It was publicised  in a newspaper notification. The employees know very little at this point due to holidays etc

I have been there for 40 years, where do I stand with regard to redundancy? They are a limited company. All a bit u sure as not been in this position before

In pretty broad terms…

If a company goes into an insolvency process and you are made redundant then the government (Redundancy Payments Service or “RPS”) steps in and pays up to a fixed amount per week, £700/week for certain specific claims (not just redundancy).

This .gov site gives a good overview and is worth a read.

https://www.gov.uk/your-rights-if-your-employer-is-insolvent

Edit. Shortened my long post as most of it is in the link and probably better you work through that than my quickly phone typed overview.

TUC website for advice  or CAB

https://www.tuc.org.uk/workplace-guidance/dismissal-redundancy-and-grievance/redundancy

There are tightly defined rules about how much you should get based on age, length of service and salary.  I seem to remember its more complex in insolvency

 I seem to remember its more complex in insolvency

Correct.  Although the redundancy calculation is exactly the same there are other claims you can make from the RPS. The good thing is most of the calculations are done based on fairly accessible data so as an employee you feed the claim system known data and it works out the rest (it wasn’t always so “easy”).

Most of that complexity is on the IP (insolvency practitioner) and the RPS and not the employee so long as they get their claim in correctly at the outset and don’t forget to do the notice pay form that they get at the end of their notice period.

Thanks for the info. It’s all a bit daunting and not a good time of year for it to happen. Due back on the 6th so should be more clear then.

Try this:

Calculate your statutory redundancy pay – GOV.UK

toomba

Thanks for the info. It’s all a bit daunting and not a good time of year for it to happen. Due back on the 6th so should be more clear then.

After 40 years I expect it’s a lot more than a bit daunting.

However, change is always scary, but most often a very good thing with hindsight.

Best of luck and wishing you a happy and healthy 2025

Keep a close eye on everything the RPS does. They will do their own calculations, only loosely based on information you, the insolvency practitioner or any tribunal judgment provide. They are very reluctant to be transparent about how they arrive at final figures. In my case they made a number of significant mistakes and used methods of calculation that can only be intended to whittle down the amount owed. No explanation provided for the discrepancies. It took quite a while to get through the half answers to find out the truth and get it rectified.

For a number of reasons beyond my control I’m coming up on 4 years now and still waiting on a final payment for holiday entitlement from the insolvency practitioner. The RPS were reasonably quick when it was their turn but overall it has been a long process that probably would not have been worth the bother if I wasn’t determined to see it through, initially just to give my old company a kicking (let me assure you they deserved it), later just to finish what I’d started. Out of several hundred employees less than a handful got this far. Much of the lost time has been a novice insolvency practitioner that didn’t realise the clusterf*ck they were getting into. Good Luck!