Dear insolvency professionals We advised you in the November edition of Dear IP that the Insolvency Service is introducing a new Case Management System (CMS) in the first quarter of 2019, currently expected to be at the end of February. The CMS will bring about changes to the way the Redundancy Payments Service..
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The Employment Rights (Increase of Limits) Order 2018 With effect from 6 April 2018 the statutory limit one weeks pay for the purpose of calculating a redundancy payment increases from £489 to £508. A copy of the above relevant statutory instrument is available at the following web site address: legislation.gov.uk
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The Employment Rights Act 1996 and Pension Schemes Act (amendment) Regulations 2017 The Employment Rights Act 1996 and Pension Schemes Act 1993 (Amendment) Regulations 2017 (“the Regulations”) make amendments to sections 166 and 183 of the Employment Rights Act 1996 and section 123 of the Pension Schemes Act 1993 (“the..
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Are directors entitled to redundancy? There is a widely held view and common belief that company directors are not entitled to redundancy pay but in limited circumstances it may be possible. When a business fails and has to go into liquidation, directors, who have invested time, sweat and money in..
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As the director of a limited company, you probably have some understanding of redundancy payments and how they apply to your employees, but few company directors know that they may also be entitled to claim statutory redundancy payments. If your company is struggling financially, despite your best efforts to turn..
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Do directors get redundancy? The conditions for redundancy eligibility as a company director include: Your company goes into liquidation or administration You have a written, oral or implied contract of employment Your limited company being incorporated for at least two years You have been earning a regular salary through PAYE..
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Directors redundancy When a company goes into liquidation, it’s generally understood that employees are entitled to redundancy pay. But what about the company directors themselves? Ultimately it is their business that has failed, and their livelihood that has collapsed. Unbeknown to many directors, the government does provide limited company directors..
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When a business fails, and cannot afford to pay redundancy money, employees can claim redundancy money from the National Insurance Fund (NIF) by making a claim to the Redundancy Payments Service (RPS). The issue becomes contentious when director shareholders claim: sometimes the RPS will argue that a director shareholder is..
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Are directors entitled to redundancy? When a limited company faces insolvency there is a strong likelihood that, unless an Administrator can make immediate changes to restructure the business and make it both profitable and saleable, it will close. The consequence for employees of both restructuring and insolvency is that they..
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Can directors be made redundant? It is not a widely known fact, but company directors can receive statutory redundancy pay from their limited company under certain circumstances. If your company becomes insolvent and has to be liquidated, whether this happens on a voluntary basis or forcibly via a creditor’s winding-up..
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