If your company goes bust how do you get your redundancy money?

(3 Posts)
phoebebouffet Wed 02-Feb-11 22:51:02

Well actually it's a charity I work for but if there is literally no money in the bank account where does the redundancy money come from?

LIZS Thu 03-Feb-11 08:56:09

You would go on a creditors list and the administrators would prioritise paying those listed from whatever assets still exist. Not sure if redundancy is underwritten by any govt scheme.

Iklboo Thu 03-Feb-11 09:00:51

IIRC you are listed as a preferential crditor and the payout would come after all assets had been sold and the taxman paid off. But rather than get your 'full' entitlement it would be so many pence in the pound out of what was left, with those employees who had been there longer getting more than those who had been there less time, if you see what I mean.

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