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Case Study: Manufacturing Company

Manufacturing Company

Mr. P had been successfully operating his business within the UK for nearly two years, but the business had been operational in Mr. P’s native Australia for many years before the move to the UK.  The company had a manufacturing unit in China, a global market, and an extensive emerging market base in the United States. Mr. P had secured major investment to grow the business to the next level with a view to bring the manufacturing side of the business to Teeside in the UK.

Then the Covid Pandemic hit.

Whilst the investors were initially prepared in the first few months to continue with their investment plans, as the global impact of Covid 19 unfurled they could no longer support the expansion and the investment. Coupled with the economic impact of Covid on the United States, Mr. P’s major marketplace, Mr. P sought professional advice and made the very difficult decision to put the business into a voluntary liquidation. He believed that the business would not be able to bounce back from the impact of Covid 19.

Mr. P was made aware of by Begbies Traynor who advised him that he may be eligible to claim a director’s redundancy payment. As a native Australian Mr. P admitted that he was totally unaware of the Redundancy Payments Service (RPS) and his potential eligibility to make a claim.

Mr. P was advised of his rights under the Employment Rights Act 1996 and that, due to subsequent case law and the fact that the business had paid him a wage  he was eligible to make a claim to the RPS. To qualify for a redundancy payment an employee needs to have 2 years’ service. Mr P was concerned that as his company had been incorporated in the UK for less than 2 years, he would be disqualified from making a claim. RCUK retain the services of a specialist employment law barrister and we were very quickly able to confirm Mr P’s eligibility. Mr P had been previously employed by the Australian arm of the business and this length of service transferred to the UK, giving Mr. P 6 full years’ service.    

Mr. P was able to claim £11,337.91 through Redundancy Claims UK. Mr. P described this as an unexpected bonus during very difficult times.  

He was able to make a successful claim because he chose to instruct an organisation that  understands the legal framework and case law to qualify to make a claim and also has input from a specialist barrister to support more complex director circumstances. RCUK also appreciate the emotional impact that a voluntary liquidation has on its clients.   Mr. P’s business was 10 years in development, research, implementation, and expansion and Covid bought about the closure of the business in a relatively short period of time. Redundancy Claims UK took away the pressure of the claims process and achieved a sum of over £11.000 for Mr. P, a sum he was previously unaware he was entitled to. We have also assisted Mr P’s fellow director who had longer service. He has already received an award of £12,440.33 with an imminent payment of notice pay due in the sum of £3,793.58 giving a total award of £18,659.70. Collectively  two directors will achieve awards of nearly £30,000.

Mr. P commented that he found the team at Redundancy Claims UK very professional from the start. His query in relation to length of service was answered on the same day. The sales team and case management were efficient, and Mr. P received most of the funds from the RPS in 6 weeks of making initial contact with RCUK, with the remainder being his notice pay being paid 3 weeks later. Mr. P was impressed with the knowledge and professionalism of RCUK and was very pleased that he received the funds that he wasn’t aware he was entitled to in such an expedient manner.

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