bankruptcyinstruction

What is redundancy? 

Redundancy is generally where an employer needs to reduce his or her workforce. It may happen because a work place is closing down, or because fewer employees are needed for work of a particular kind. Normally your job must have disappeared. It is not redundancy if your employer immediately takes on a direct replacement for you. But it will not matter if your employer is recruiting more workers for work of a different kind, or in another location.

What is a redundancy payment? 

The statutory redundancy payments scheme aims to ensure that those who are dismissed through no fault of their own receive compensation.  Employees with more than 2 years service are statutorily entitled to a lump sum from their employer, based on their age, length of service and contractual earnings up to a maximum limit which is currently £310 per week and is reviewed annually.

How do I claim a redundancy payment?

By law, your employer must make the payment when or soon after you are dismissed. There is no need for you to make a claim unless your employer does not pay or says that you are not entitled to a payment. If this happens, you should write to your employer asking for payment or take the matter to an employment tribunal, or both. You must act within six months of the date your employment ended. If you do not make a written claim, or do not apply to an employment tribunal within six months, you may lose the right to a payment. But a tribunal will still have the power to decide whether you should receive a payment if you apply to it within a further six months and it is satisfied that there were good reasons for the delay.

What can I do if my employer cannot or will not make a redundancy payment?

 You can claim your payment from the Redundancy Payments Office (RPO) if your employer is declared legally insolvent.  This generally means liquidation, administration, receivership, bankruptcy or a voluntary arrangement with creditors.  The insolvency practitioner dealing with the affairs of your employer will give you an applications form RP1 and information publication. 

If your employer is not legally insolvent and you have an employment tribunal award, which he or she has not paid, you can apply to the RPO for payment.

Referred from: (http://www.insolvency.gov.uk/)