Are you a Director of a Limited Company that has gone into insolvent liquidation? If so, do you realise, that like your employees it is possible for you also to claim for unpaid wages and forgone holiday?

As a Director of a company which cannot pay its debts as and when they fall due, it is often the directors who do not pay themselves, whilst ensuring that their staff get their monthly wages.

For staff who don’t get paid their full entitlement in respect of wages, or holidays or notice at the time they are laid off, there is the option of applying to the Redundancy Payments unit for these entitlements to be paid up to them. The staff need only complete a Form RP1, which is usually handed to them by the Liquidator of their employer company. Once this has been completed it is usually returned to the IP who will send off all the claims in one batch.

For the Directors however it is slightly different. There has generally been the view that a Director couldn’t also claim benefits that employees obtained as a right. This has now been settled and the outcome is that if a Director can also show that they were an employee, they can claim for wages which have been unpaid, and leave which they have lost.

The Insolvency Service and specifically the Redundancy Payments department deals with all claims and there are very specific requirements that must be shown for a Director to be able to claim. These include showing that they had a proper contract of employment; that they were paid monthly for work done as an employee. Essentially they must show that as well as being directors they were employees as well. In smaller firms we have been able to do this quick easily.

It is important to get the claim correct at the outset as a rejection could leave you having to take a claim through an industrial tribunal which is an expensive and time consuming way to get a claim paid out.

We do not charge an up front fee we charge 20% of the amount recovered. There is nothing to lose therefore as we operate on a no win no fee basis. If you are interested in taking this offer please use the contact address below.

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