Are directors entitled to redundancy pay?
In short, yes. As long as you can demonstrate your status as an employee of the company, as well as being the company’s director, redundancy for directors is similiar to redundancy for any employee.
Have you worked for the business for more than two years continuously? Have you been entitled to remuneration from the company during this time, with at least part of your salary going through the company PAYE?
If you can answer yes, then if the company is closing due to financial reasons and is unable to make a redundancy payment to you upon closing, you are likely to be entitled to redundancy pay from the Redundancy Payments Service.
Regardless of how long you have worked for the company, you will also be entitled to (at least) a paid statutory notice period, together with any unpaid salary the company owes you, and/or outstanding holiday days. If the company cannot meet these obligations, these payments (subject to statutory limits) can be claimed from the Redundancy Payments Service once the company goes into liquidation.
How much you are owed is likely to be an indication of which route would be best for you — insolvency or non-insolvency.
Helping director employees get back what they’re due
Contact us for a free, initial consultation. We will be able to assess your entitlements, give you a good idea of what the value of any claim is likely to be and talk you through the process.
Customers We've Helped
Thank you very much for your email and forwarding the documents. I greatly appreciate your help and making this process so painless. I hope I won’t have to go through this process again, but if I hear about anybody in the same situation, I will certainly recommend Redundancy Assist!
Limited Company Director
You really have made this process so easy for us and we are over the moon. I know it sounds silly but her life has been that business and she tried to save it with her life savings under really awful circumstances. We are so glad that she will receive something back when she gave it her all. Thank you for your help and guidance.
Nominated family member liaising with Redundancy Assist
Thank you so much for all your hard work. It really has been very much appreciated.
Small business owner
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