Facing redundancy as a director can be daunting, especially with increasing scrutiny from the Redundancy Payments Service. We provide tailored assistance to help directors prove their employment status and maximise their chances of a successful claim.
How Much can I claim
Company directors and other employees can claim up to 30 weeks of Redundancy pay, which is currently capped at £751 per week and tax-free. They can also claim up to 8 weeks unpaid wages and 6 weeks holiday pay; together with a maximum of 12 weeks notice pay, again capped at £751 per week.
Who is entitled to a redundancy claim
To be eligible for a redundancy claim in the UK, you need to have been employed by the company for at least two years. You will be entitled to Notice Pay after a month of service while your Arrears of Pay and Holiday Pay are on a case by case basis.
Redundancy Entitlements for Company directors
A director will need to be paying themselves at least £400 or higher per week to qualify for a directors redundancy claim. The redundancy payment service are currently scrutinsing directors claims and are rejecting claims where the director's employment status and income levels do not meet the eligibility criteria
So what does the redundancy claim timeline look?
Step One
Initial Eligibility Consultation
Your journey begins with a quick, no-obligation 10-minute chat with a member of the Redundancy Support team. During this call, we’ll confirm your eligibility for a redundancy claim and answer any immediate questions you may have about the process.
Step Two
Terms and Supporting Documents
Once your eligibility is established, we’ll send you a comprehensive set of terms and conditions to review. Alongside this, we’ll outline the supporting documentation required to evidence your claim, making it simple and clear for you to gather the necessary materials.
Step Three
Liaising with Your Insolvency Practitioner (IP)
Redundancy Support will collaborate directly with your chosen Insolvency Practitioner (IP) to ensure all necessary information is accurate and aligned on both sides. This step helps avoid delays and ensures the claim process proceeds as smoothly as possible.
Step Four
Submitting Your Claim
Once all required information has been received and the liquidation date has passed, Redundancy Support is ready to submit your claim. At this point, we will also need the Confirmation of Notification (CN) reference from the IP to proceed.
Step Five
Processing and Approval
The Redundancy Payments Service (RPS) aims to process claims within six weeks, in line with their guidelines. Once approved, your redundancy payment will be transferred to our secure client account.
Step Six
Redundancy Support Fee Deduction
After receiving the funds, we will deduct our agreed fee directly from the payment. Our transparent fee structure means you’ll know exactly what to expect, with no hidden surprises.
Step Seven
Final Payment to Your Bank Account
The remaining funds will be promptly transferred to your nominated bank account. At this stage, your redundancy claim is complete, and you’ll have the funds in hand to move forward with confidence.
How Long Does the Process Take?
Once a redundancy claim has been submitted to the Redundancy Payment Service (RPS) a payment is typically made within 6/8 weeks.
What Are the Costs?
Our service operates on a no-win, no-fee basis. If we do not secure a successful payout from the redundancy payment service you pay nothing. If successful, a pre-agreed percentage of your award will be deducted as our fee. There are no hidden charges or surprises.
Next Steps
Our structured redundancy claim process begins with qualifying your eligibility, followed by collecting all necessary documents, submitting your claim accurately to the Redundancy Payments Service (RPS), monitoring progress, escalating issues if needed, and ensuring you receive the correct payment without unnecessary delays.
Frequently asked quetsions
Director's Claim Questions
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Can I claim as an office holder director?
No unfortunately, you have to be an employee as well as a director in order to claim.
Do I need an employment contract?
Whilst having a written employment contract can be helpful, they are by no means a necessity. A contract can be written, verbal or implied.
Why can’t I claim my full unpaid wages?
When claiming from the government they have caps in place to limit the amount of money paid out. For example, unpaid wages are capped at a maximum of 8 weeks.
Do I have to use a claims management company?
No you are able to submit this claim yourself, however a CMC such as Redundancy Support will drastically increase your chance of obtaining a successful award.
Is my claim subject to tax?
Whilst redundancy pay is untaxed; notice, holiday & arrears of pay are all subject to tax deductions
Redundancy Made Simple: Expert Support, Maximum Results
Redundancy Support is your trusted partner in supporting your claims journey – every step of the way.