Director as Employee
If your company is heading for liquidation due to insolvency, you will be facing all sorts of financial obligations. One of those responsibilities will be to your employees, who in many cases will be entitled to a redundancy payment.
Your Responsibilities
What you may not have realised, however, is that as a director of a limited company you too could be eligible for redundancy. If you are classed as an employee of the business, we can make a claim to the government’s Insolvency Service on your behalf.
With the average settlement being worth £9000, this could help to pay for the actual cost of liquidating the business. You may even be left in credit.
Would you qualify?
We will give you an independent assessment as to whether you meet the criteria. To be eligible, you would need to:
You would be classed as an employee if you had been working under a contract of employment for at least two years and worked a minimum of 16 hours per week. You would also need to be owed money by the company in terms of the money you invested originally or have invested subsequently. If you have drawn money from the company without the deduction of tax your right to claim as an employee will be disregarded..
The value of any claim is based on your age, the length of service and your salary.
You may also be able to claim for other statutory entitlements such as backdated notice pay and holiday pay.
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How can we help?
To be entitled to director redundancy payments, you need to have instructed a licensed Insolvency Practitioner and be putting the company into liquidation rather than just closing it or striking it off.
If we think you have a valid claim, we will help you see what you are entitled to and provide you with an estimate of the value before starting the application.
We cannot advise you if we are also the liquidator of the company.
