The quickest and easiest way to ascertain whether you qualify for director redundancy is to complete our Quick 60 Second Review - and one of our team will contact you to advise.
To put director redundancy claims into perspective, more than 75,000 claims were received by the Redundancy Payments Service throughout 2015 of which many were company directors. The total amount of these successful redundancy claims was £276,708,000 paid out from the National Insurance Fund.
Despite this, many directors – with companies in an insolvency procedure – do not realise they have a legitimate claim to redundancy and, of those that are aware of their statutory rights, many have their claim rejected because they fail to make their claim correctly. In fact, when directors attempt to claim redundancy themselves without professional assistance, we estimate 50% of these claims are thrown out by the Redundancy Payments Service. The slightest error, inconsistency, blank or misnomer will lead to an instant redundancy claim rejection.
However, our claim success rate is 98%.
Early advice is key, because taking action after your company is liquidated could prevent you claiming your statutory entitlement either in part or in full – there is little time to waste.
Under the Employment Rights Act 1996 it is a legal requirement for an employee, including a director, to be in possession of an employment contract in order to claim redundancy and other statutory entitlements.