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Redundancy and insolvency

(3 Posts)
jackstini Sat 25-Apr-20 09:52:15

I was made redundant in November, leaving date Feb 7th
Was then extended to May 1st, with a bonus to stay the extra 12 weeks and an objective related bonus (to be added to redundancy, tax free)

This week we have Insolvency Practitioners in

Any advice on what happens if they go into receivership/administration before my leaving date next Friday?

I don't have a new job to go to yet (& obviously not the best time to be looking...) confusedsad

OP’s posts: |
Isleepinahedgefund Sat 25-Apr-20 17:12:17

Any money they owe you would be a debt in the insolvency proceedings.

You might be able to claim some of it from the govt Redundancy Payments Service:

https://www.gov.uk/your-rights-if-your-employer-is-insolvent

But anything above the statutory amounts (like your bonus) will have to be claimed from the insolvency. Takes a while and if there is no money you won't get it. Employees are "preferential creditors" ie you will get money back first before other me creditors.

Realistically though most creditors don't get any money when a company goes under because the insolvency practitioners take a lot of it in fees.

jackstini Mon 27-Apr-20 17:46:09

Thanks @Isleepinahedgefund

I thought that may be the case - so likely going to end up with only 1/3 of what was promised sad angry

This week is going to be a long one...

OP’s posts: |

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