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Do You Qualify?

For directors to be entitled to redundancy payments, you must have been a director-employee, working under a contract of employment – whether that is written, oral or implied. The following quick questions will give you a good, general idea of whether or not you qualify, and whether you would be likely to put forward a successful application for payment.

Have you worked more than 16 hours per week for 2 full years or more?

 

Yes
Continue to the next question

In order to qualify for redundancy payments, you need to have worked continuously for the company for at least 2 consecutive years. If you haven’t, you will still be entitled to a paid notice period, along with any unpaid wages and outstanding holidays you are owed. See further information below.

No
In order to qualify for redundancy pay, you must have given at least 2 years continuous service to the company, working a minimum of 16 hours per week. However, if your company liquidates, and the company has been unable to pay you, or your employees, any of the following where it is due, regardless of the length of service or number of hours worked per week, you / they may be able to put forward a claim to the National Insurance Fund for:

  • Any unpaid wages (up to a maximum of 8 weeks) you are owed
  • Outstanding holiday (up to a maximum of 6 weeks)
  • Loss of notice, where owed

 

Have you been entitled to remuneration – or a regular wage – from the company, payable in part or entirely through the company PAYE?

Yes
Continue to next question.

Your PAYE history will be a strong indicator of your employment status. It may be the case that not all of your salary has been paid through the company PAYE, however, it is a requirement that at least some of your salary has historically been paid through the company PAYE. If you have any queries concerning this, please feel free to contact us and discuss your individual circumstances.

No
if you have been unable to pay yourself in recent months, this may not preclude you from making a claim, if you can demonstrate that you have historically been entitled to a salary from the company. Usually, this will require at least some of your pay to have been paid through the company PAYE system. 

If you have never paid yourself through the company PAYE system, only ever received irregular dividend payments, or no payment at all, it is less likely that you would able to submit a successful claim to the National Insurance Fund. However, if you would like to chat this through with one of our advisors, please feel free to contact us directly for further advice.

Is the company struggling financially and not viable moving forward? Has it, or will it be unable to make any of the following payments to its employees (including yourself as a director-employee) upon closing?

  • Redundancy

  • Arrears of pay owed

  • Outstanding holiday days

  • Statutory paid notice period

Yes
it is very likely that you (and your staff) will be able to make a successful claim to the National Insurance Fund.

How much you will be entitled to will depend on your age at the termination of your employment, the length of service you have given the company, and your weekly salary entitlement. Find out how to calculate what you are owed here. 

No
If your company can afford to settle all outstanding employment entitlements prior to closing, it should do so. You will not need or be able to make a claim to the National Insurance Fund. If you are unsure what the company is liable for in terms of employment entitlements prior to closing, you can find further information here. Alternatively, please don’t hesitate to contact one of our advisors and we will be happy to discuss your individual circumstances and clarify any queries with you. 

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49 Duke Street

Darlington

DL3 7SD

01325 740835

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