Glossary of Terms
A company is insolvent when its liabilities exceed its asset and/or it can’t settle its liabilities when they fall due.
A formal legal procedure for closing an insolvent company through the courts may be initiated by a company’s creditors or the directors may apply to the courts to liquidate the company.
You can apply to companies house to dissolve, or strike off a company that is no longer required. It is not a formal legal procedure, costs £10 and is only suitable for companies that do not owe any money to creditors — including employees. New government legislation has recently been announced, making directors personally liable for the offence of allowing a company to be dissolved while still having debts.
Payment you are entitled to as an employee of the company (once you have been employed continuously for two years or more for actual redundancy pay) in compensation for your job ending because your employer/the company is insolvent.
Not always as straightforward as you might think! Anyone working for the limited company under a written, verbal, or implied contract of employment or contract of service.
Annual statement of salary earned and taxes paid during the tax year provided to employees by the limited company.
Final statement of salary earned and payment of taxes during the current tax year given to employees at the end of their employment.
Day on which the shareholders and creditors’ meetings for the company tax take place, where the company is formally placed into liquidation.
Redundancy Assist is a claims management company. If you choose to instruct us we will manage your claim to the Redundancy Payments Service on your behalf. We will make sure that you claim the correct amount, all forms are filled in correctly, and all necessary documentation is gathered and presented to the RPS as required. We will then liaise with the Redundancy Payments Service on your behalf as necessary until your claim is finally settled.
Please note that you do not have to use a claims management company to make a claim to the Redundancy Payments Service. You can do this yourself and without charge. Further information on how to do this will provided to you by your Insolvency Practitioner.
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If you’ve got a question about any aspects of redundancy, get in touch using the form below and a member of the team will be happy to help.