Laura Macdonald | Senior Associate

Employees’ rights

REDUNDANCY PAYMENT

Provided that an employee has two years’ continuous service, they will be entitled to statutory redundancy pay. This is based on the employee’s gross salary (subject to a statutory cap of £525 per week), their age and amount of complete years’ completed. A statutory redundancy calculator can be found on the UK Government website.

NOTICE PAY

Employees will be entitled to their statutory or contractual notice payment. In circumstances where the collapse deprived employees of notice pay, the company is in breach of contract, and therefore a sum can be claimed.

OUTSTANDING PAYMENTS INCLUDING HOLIDAY PAY

Any wages owed to employees (including “workers”) at the date of liquidation will be owed to them, and similarly in relation to accrued and outstanding holiday pay.

PROTECTIVE AWARD

Employees would be able to claim for Protective Award, to compensate them for failure to consult with them regarding the ultimate redundancy situation. The award for this is up to 90 days’ pay and requires an Employment Tribunal Claim to be raised.

PAYMENT FOR THE NATIONAL INSURANCE FUND

In the event the company cannot pay these debts to their employees, applications can be made to the National Insurance Fund for money you’re entitled to.

EMPLOYMENT TRIBUNAL CLAIMS

There are time limits for raising any claim in the Employment Tribunal, and any workers wishing to pursue a claim relating to any of the above claims must do so within three months (subject to any extension provided by participating in ACAS Early Conciliation, which is now compulsory before pursuing a claim).

Laura Macdonald

Laura Macdonald

Employment Law Team

“I strive to provide clear and practical advice to clients, focussing on the individual or organisation’s particular circumstances and requirements.”

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