redundacny payments agy

[j4ckos mate]

The initial message was deleted from this topic on 07 January 2015 at 09:47

[JamieBeeston]

j4ckos mate said:

hi

hypothetically speaking

if you make someone redundant, but the company is still trading, ableit not very well and there is no money in it the company, can they claim redundancy from the govt? will they pay out?
or does it have to come from the employer?

The company owes the money, if it cant pay then I'd expect it to be liquidated.

The government would cover redundancy shortfall at the basic level.

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

[Eric Mc]

A company has a legal obligation to pay its employees BEFORE anybody else APART from lenders who may have a charge on company assets.

[Dr Interceptor]

As above, if the company couldn't pay the redundancy, the member of staff could take them to the small claims court to pursue the debt.

If unresolved this would lead to a CCJ against the company. If that wasn't then satisfied, the court could order the winding up of the company.

At that stage the government would pay out the statutory minimum. But not while the company is still trading.

[anonymous-user]

Sounds like they may be trading insolvent, or at least very close to it.

In my view, they'd need a very good reason to not to be calling in the liquidators in those circumstances.