Q. Despite being made redundant eight weeks ago I still haven't received my redundancy payment. I have now heard rumours that my ex-employers are in financial difficulty. If they went under would I lose my redundancy payment?
A. If an employer fails to pay all or part of a redundancy payment due to an employee then the employee may apply to the National Insurance Fund for payment in 2 situations:
1. Where the employer has refused or failed to pay and the employee has taken all reasonable steps short of legal proceedings to recover it.
2. Where the employer is insolvent and the whole or part of the payment is unpaid.
Therefore, if your ex-employers were to become insolvent then you would be able to bring a claim on the fund. There are detailed rules as to whether or not an employer is regarded as insolvent. However, it appears from your query that they are still operating and therefore you would not be able to claim under point 2 above at the moment. However, you will be able to claim under point 1, provided that you take all reasonable steps to seek recovery first.
We would suggest that you make an appointment with our Employment Experts who will be able to assist you with this. If, despite their best efforts, they are not able to obtain payment from your ex employer then they will be able to assist you with a claim to the Redundancy Payments Office in Edinburgh.
Should you have a queries regarding a legal matter please contact Keith Swan of Patterson, Glenton & Stracey Solicitors by email at ks@pgslaw.co.uk or by telephone on 0808 231 7043. Patterson, Glenton & Stracey have provided legal advice to the people of South Tyneside for over 125 years. For details of their full range of services and to view previous Gazette articles please log on to www.pgslaw.co.uk.
