When the time comes to assessing the viability of a claim to the Redundancy Payments Service then, there can be some concern over what documentation is going to be required for it to proceed successfully.
Do you need a contract of employment to make a successful director’s redundancy claim to the Redundancy Payments Service?
Yes and no.
If you have a written contract of employment or statement of your employment terms and conditions, that’s excellent news and we’ll ask you to provide us with a copy to support your claim.
If you don’t, and the majority of directors we work with don’t, then your payroll and employment history with the company will likely be able to establish that you were working under an implied contract of employment, even where no written contract of employment was actually produced.
What’s really crucial is your payroll history with the company. If you’ve been paid, at least to some extent, historically through the company PAYE and actively working for the company on a daily basis, it’s likely that we’ll be able to proceed. If however, you’ve never set up or been paid through PAYE, it’s less likely that you’ll be able to proceed successfully.
If you’re unsure about any of this, don’t worry. You can chat to us anytime you like and we’ll help you find the information needed to establish whether you’d be likely to receive a payment from the Redundancy Payments Service.
What payroll information do you require?
If the company issues you with a P45, we’ll request a copy but if you don’t have one it’s not a problem.
We’ll also ask for copies of your last three payslips and any P60’s issued by the company.
If you don’t have access to these, or can’t get hold of them, there are alternatives that we can arrange.
This may slow the process down, so it’ll be quicker if you can access them directly. As long as you’ve received salary through PAYE historically, we’ll be able to arrange documentation to demonstrate this and support your claim and salary level.
Am I under any time restrictions to claim to the Redundancy Payments Service?
Again, yes and no. Once you’ve decided that you intend to liquidate the company, it’s likely to be more beneficial to you and your staff to move quickly.
Any claims for redundancy pay, pay arrears, outstanding holiday and loss of notice can only be put forward once the company goes into liquidation, so on the one hand you need to wait for this to happen before claims can be submitted. On the other, there’s a time limit which may restrict claims for statutory redundancy pay.
Claims must be made to either the Redundancy Payments Service or to the company within six months of the employment ending. If you’re unable to submit your claim to the Redundancy Payments Service within six months of your employment ending, your claim can still be successful if you can show that you intended to claim statutory redundancy pay from the company within six months of your employment ending.
The Redundancy Payments Service will only consider claims for outstanding holiday pay for the period in the 12 months prior to the date of liquidation. Outside of this period, no outstanding holiday payments will be made.There’s no time limit on claims for arrears of pay or loss of notice.
If you’re in any doubt about what paperwork will be required to support a claim to the Redundancy Payments Service, get in touch and we’ll be able to advise on the specifics of your individual circumstances directly.
In all cases, we’ll be pleased to provide a free initial consultation and assessment.
If you want to go ahead then it’s your decision but it’s important to know where you stand and what’s available to you and your staff if there’s no alternative but to close the company.