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Case Study: Restaurant Company

Restaurant Company

A restaurant had been running successfully in the heart of Bristol for over six years. After seeing revenues suffer due to increased competition, Mrs Stevens feared for her business. She had tried to introduce incentives for early dinners and extended her opening hours, but to no avail. The business was placed into liquidation after creditors had been rigorously chasing her for payment.

Mrs Stevens had been made aware of by a liquidator but had been told by her accountant she would not qualify for a redundancy payment as she was a director, the only shareholder and there were no employees. Initially she was reluctant to speak to anyone from Redundancy Claim - only because she was generally pessimistic and her luck had been out in recent times. She refused to believe how she would be due any money as she was only paying herself minimal salary and the company itself was broke.

On a more positive day, Mrs Stevens spoke to a representative from Redundancy Claim and we were able to confirm a claim would be available for over £9,000. She described it as the best news she had received for over a year.

Before Mrs Stevens agreed to proceed with the claim, she wanted as much information as possible, including the background to the redundancy claim. Of particular relevance was she now understood the redundancy money was paid from the National Insurance Fund which is managed by the Insolvency Service. The National Insurance Fund was available to assist companies who needed to liquidate their company but did not have the money to pay their staff redundancy.

She wanted to know about her role, the role of the Insolvency Practice, the role of the Redundancy Payment Office, Redundancy Claim's role and responsibilities, the timescales, the legalities, likelihood of success and so on. Redundancy Claim were able to answer all her questions and leave her in no doubt about the process.

In the end, Mrs Stevens proceeded as she felt reassured and had nothing to lose, due to Redundancy Claim not getting paid a fee until the former director has been paid by the Redundancy Payment Office. She also wanted to make sure she claimed for everything she was legally entitled to claim.

Mrs Stevens was very proactive in following the redundancy process; the paperwork required to be completed in order to submit a claim was returned within hours. Every bit of detail possible was included; such as payroll records, an employment contract, holiday entitlement details and signed terms and conditions.

The £9,000 redundancy payment was received in the timescales discussed at the start of the process and Mrs Stevens sent a wonderful thank you note.

Many directors don't consider themselves to meet the criteria and don't claim when they have a legitimate right to.

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