Posted on: Thursday 19th March, 2020
The demise of Thomas Cook has left an estimated 9,000 UK employees facing financial uncertainty. Their employer has gone into liquidation, which means eligible members of staff can claim statutory redundancy pay.
The right to claim statutory redundancy depends on an employee’s length of service, with the minimum timescale in this respect being two continuous years. Other statutory entitlements may also be available, including arrears of wages and holiday pay.
So how is redundancy pay calculated, and what other entitlements might former Thomas Cook employees be entitled to?
Redundancy pay calculations incorporate an employee’s age, length of service, and weekly wage:
Limits have been set for these figures, however:
Members of staff could also be eligible to claim:
Some of the company’s former employees may be able to make a further claim for a ‘protective award’ of up to 90 days’ gross pay in accordance with the Trade Union and Labour Relations (Consolidation) Act, 1992. This is in relation to their right to collective consultation prior to being made redundant.
If more than 20 people are made redundant from one establishment within 90 days, the company in question must undertake collective consultation procedures. The fact that the company is no longer trading doesn’t affect employees’ rights to be consulted with regard to redundancies.
When an employer has gone into liquidation employees can claim their redundancy pay from the National Insurance Fund (NIF) rather than the company. The government has provided instructions online for former Thomas Cook staff on how to claim redundancy payments, with specific details of who the staff in various Thomas Cook departments should contact.
Redundancy payments are typically made around 14 days following receipt of a claim, but the government also states that special arrangements may be put in place to fast-track claims and payments where possible in relation to Thomas Cook.
Redundancy Claims UK are redundancy experts and can provide more information on how to make a claim. We’re also specialists in claiming director redundancy. Please contact one of the team to arrange a free same-day consultation. RCUK are Authorised and Regulated by the Financial Conduct Authority. Authorisation No 830522. You can check our registration here.
Does accepting a new job offer before the date of redundancy prevent a director making a claim for redundancy to the RPS
If you are looking to close your limited company, you may have attempted to strike it off by submitting a DS01 form to Companies House. This process is also sometimes referred to as dissolving or company dissolution.
A Creditors’ Voluntary Liquidation (CVL) is an official procedure whereby a company’s assets are liquidated in order to pay creditors. It’s typically initiated by directors when their company becomes insolvent and there is no hope of business recovery.
Redundancy claims are a very professional company, Caroline who is dealing with our case is friendly, compassionate and very clear in explaining everything during this difficult time. The service we have received has been amazing, Thank you.Tina Hill Director of a professional services firm