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What is redundancy payment?

What is redundancy payment?

A redundancy payment is a form of compensation offered when your job no longer exists. You may have the right to claim redundancy if you are an employee, or a director. There are two types of redundancy pay:

Statutory redundancy pay – the payment rates are set down by law
Contractual statutory pay – this varies from company to company. The details will be set out in your contract of employment.

It is a legal requirement for all employees to hold a contract of employment.

Considering Director Redundancy? Suggested Reading

Does accepting a new job offer before the date of redundancy prevent a director making a claim for redundancy to the RPS?

Does accepting a new job offer before the date of redundancy prevent a director making a claim for redundancy to the RPS

My company strike off application has been rejected – what now?

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.

What is a Creditors’ Voluntary Liquidation?

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.

May I take this opportunity to thank you and your team for all your professional help in securing for myself and my wife, redundancy pay. I would have no hesitation in recommending CFS to assist them.

Tom Harrison Managing Director of a construction company