If your company is struggling financially and you’re worried about your own future, it’s reassuring to know that as a director you may be able to claim redundancy pay should the company be forced into liquidation.
Although not always a straightforward process, directors who can prove their status as an employee of their company may be eligible to make a claim for redundancy from the National Insurance Fund (NIF).
The NIF holds national insurance contributions from employers and employees, and is the source of payments for government schemes including the state pension and redundancy pay.
Are you eligible?
You should be able to claim redundancy as long as you’ve also been trading for two years, and have held a continuous contract of employment during this time. If you’re eligible, you could potentially claim other payments too.
Various factors are taken into consideration when determining eligibility, including:
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