Claiming a statutory redundancy payment

Posted: 22 August 2012

So, redundancies are back in the news again. Factories in Sheffield and Melksham are being shut down and redundancies at the National Union of Journalists have only been avoided through a number of employees volunteering for redundancy. A common problem that we come across at Redmans is what to do if your employer folds, you’re made redundant, and your employer either can’t or won’t pay you the redundancy pay that you’re owed. If you are experiencing such a problem then you can apply to the National Insurance Fund to pay either the whole or part of a statutory redundancy in one of two circumstances:

    1. If your employer has refused or failed to pay (part of) the redundancy pay that you’re owed and you’ve taken all reasonable steps short of legal action to recover it; or

    2. Your employer is solvent and the whole or part of your statutory redundancy payment hasn’t been paid to you

You can’t recover the whole of the statutory redundancy pay that you’re contractually owed (if this is relevant and above the statutory minimum redundancy pay) but you may, as above, apply to the National Insurance Fund to pay the statutory redundancy pay that you’re owed.

You must make your application to the National Insurance Fund within three months less one day of your being made redundant. For example, if you were made redundant on 2 August 2012 then you must make an application by 1 November 2012. You must make your application on Form RP1 to your local Redundancy Payments Office (in Birmingham, Edinburgh or Watford). You should see form RP1 to determine which office you should apply to.

Should you believe that you have been unfairly made redundant then you may also have a claim for unfair dismissal. You should consult an expert employment law solicitor to determine what your rights are and to see whether it is appropriate (and possible) to make a claim for unfair dismissal under the Employment Rights Act 1996.

 

Chris Hadrill is an employment solicitor at Redmans Solicitors , Richmond.