Redundancy Payments........

[Im a BusyBee]

Can someone help me please......i need to know whether the government pay towards redudancy payments? Or would the Company making the redundancies be 100% liable?

[fliptheswitch]

Some helpful information on this site. I can't seem to find anything on government payments though, therefore I assume the company would be fully liable.

http://www.direct.gov...edundancy/DG_10029836

[Jayne-123]

The Government don't pay redundancy money, its up to the company.

[Im a BusyBee]

Thanks for your quick answer. I had been referring to that site which has been very useful but seems to be talking from an employees angle rather than employers. Like you i could not find anything on government payments either.

[Im a BusyBee]

Thank you Jayne. Are you certain of that? Is that always the case? no exceptions to the rule?

[Im a BusyBee]

What would happen if a company went bankrupt and had no money to pay out redundancies?

[fliptheswitch]

I'm no legal eagle, but I think if that's the case, you basically don't get anything.
Well, that's what happened to me, anyway. I never thought to look into it further, just accepted that this was what happened.

[fliptheswitch]

Oh, hang on. Have a look at this...

http://www.direct.gov...oyees/Pay/DG_10026695

[redcrx]

i know that when a company does go bankrupt the government do step in with payments. Its certainly what happened when my ex lost his job

[fliptheswitch]

I'm quite gutted now, having read that. I was made redundant a few years back after the company went bust, and none of us ever got our wages. There was never any mention of the government paying it, either.

[redcrx]

usually the receiver or administrator would have to sort it out.

[Im a BusyBee]

ive just rung HMRC and they tell me they do not reimburse any redundancy payments.

[KJN]

Agree 100% with redcrx as I have a friend who worked for a Company that made him redundant recently, after about five/six weeks an amount of money appeared in his bank account showing a government department, not knowing what it was and not wanting to spend what was not theirs they contacted the receivers who confirmed that this was redundancy money, so I am confident that the government do pay an amount.

[buildersmate]

Just to put to bed the various bits of information above, some right and some wrong: -
it is the employer's responsibility to fund redundancy payments
if a business is insolvent and can't pay because it has no money (rather than won't pay), the Insolvency Service (which is part of the Government's BIS department) gets involoved to make sure the redundant employees get their minimum redundancy payments and, yes, the Government funds it if there is no money from creditors on wind-up of the business to fund the redundancy payments to employees.

[factor-fiction]

I agree fully with Buildersmate.
The only point I'd a dd is that the first £30000 is paid tax free, That of course doesn't represent a government contribution but it does mean they take less than they normally take in tax from salary