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: