Do Directors get Redundancy Pay?
All employees including directors can claim redundancy pay and other amounts they are owed following the liquidation of their company. This includes sole directors who were both the only employee and also 100% shareholder and where they put the company into liquidation themselves.
It does not matter if there are no assets left in the company and the liquidator has no funds at all. The redundancy claims are paid from the Government’s National Insurance Fund which is operated by the Redundancy Payments Service (RPS).
However, most directors are unaware of their statutory right to redundancy pay because it is a common misconception that company directors cannot claim it and those directors that do bother will find that the odds are stacked against them making successful claims. Some of the information and documentation requested by RPS is ambiguous and confuses many people, and just one simple mistake on any one of the online claim forms could result in your entire claim being rejected. This is why we started our business to help directors make successful claims.
We understand exactly what benefits company directors are able to claim and we keep fully up to date with all policy changes and new legislation. This enables us to ensure that all of our clients get the maximum pay-outs available.
CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA. Only such companies can process employment related claims.
Redundancy Entitlements for Company Directors
Company directors and other employees can claim up to 30 weeks Redundancy pay, which is currently capped at £538 per week. They can also claim up to 8 weeks unpaid wages and 6 weeks holiday pay; together with a maximum of 12 weeks notice pay, again capped at £538 per week.
We can help directors to maximise their pay-outs if they paid themselves less than the minimum wage and supplemented their earnings with dividends. In certain circumstances, long serving directors earning £28,000 PA or more, can be entitled to claim as much as £27,330.
Strict time scales apply to your claim, so if you would like us to help with your claim then we urge you to contact us straight away.