As a Director you are probably aware that if you close your company then your employees might be entitled to a redundancy claim. What most Directors do not know is that they have statutory rights too and may also be entitled to a redundancy claim. The average redundancy claim for directors is between £7,000 – £12,000 and is usually paid within three weeks of the company entering Liquidation.

Am I able to claim?

A director must be able to prove their employee status which there are many ways of doing which include;

• Minimum two years’ service
• Contract of employment (Can be written, oral or implied)
• Working a minimum of 16 Hours a week
• Salary received via PAYE

What you can claim?

The money will be paid to you by the Redundancy Payments Office via the national Insurance fund.  It’s not guaranteed that you’ll get everything your employer owes you but you can claim for:

• Statutory notice pay
• Redundancy
  • Up to 8 weeks’ wages, including a payment for a protective award if your employer has failed to consult collectively with staff
  • Up to 6 weeks’ holiday pay
  • Any arrears of pay

The level of payment depends on rate of pay, length of service and age, the gross weekly payment is currently capped at £508 per week.

Next Steps…..

Contact our team on 0800 0465 600. They will then be able to confirm your eligibility for a redundancy claim.