Getting help with redundancy: The Redundancy Payments Service
30-07-2024
Losing a job can be a very challenging and stressful experience. However, if your employer has become insolvent and cannot pay you money that you are owed this adds even further to your stress.
If you are in this situation, the latest Annual Report from the Insolvency Service highlights some important information about the support available that may be available to you through the Redundancy Payments Service (RPS).
Here’s what you need to know.
Key Figures and Support
In 2023-2024, the RPS received 85,592 claims for redundancy payments. Funded by National Insurance Contributions, the service disbursed a total of ÂŁ494 million to individuals who had been left in financial distress due to their employers’ insolvency. This means that there is substantial support available to help you get back on your feet.
Quick Processing of Claims
The report shows that on average, claims for redundancy payments are processed within 10 days. This is good news as it means you can expect to receive financial support relatively quickly, which may help to alleviate some of the immediate financial pressures you might have following a job loss.
What Can You Claim?
The RPS covers a variety of payments you might be owed, including:
- Redundancy Pay: This is compensation based on your length of service, age, and weekly pay.
- Unpaid Wages: Any wages you are owed by your former employer.
- Holiday Pay: Payment for any accrued but unused holiday.
- Statutory Notice Pay: If you didn’t receive the notice period pay you were entitled to.
- Protective Awards: Compensation if your employer didn’t consult you before making you redundant.
For example, last year, nearly 10,000 former employees of the high street chain Wilko received ÂŁ53.7 million in redundancy and statutory notice pay, with claims processed within 24 hours. Additionally, protective awards included payouts to over 400 former employees of Debenhams and more than 700 former employees of Norwegian Air Resources UK Limited.
How to Apply
If you need to apply for redundancy payments, the process is straightforward and can be completed online. Here are the steps to follow:
- Check your rights: The Insolvency Service provide guidance on this at https://www.gov.uk/government/publications/redundancy-payments-links-to-further-information-and-guidance/redundancy-payments-links-to-further-information-and-guidance. From here you will be able to find out what your rights are, what you can apply for and the types of payments that can be made.
- Prepare your details: You’ll need to provide some details about yourself and your employment. The online application (see below) includes a list of the items you’ll need to have on hand. You’ll need a CN number to make an application. If you don’t have one, then you can contact the insolvency practitioner who is handling your employer’s insolvency, and they will provide you with this.
- Submit your application: There are 2 applications to complete, and these must both be completed online. To claim for redundancy and other money you’re owed by your employer, see: https://www.gov.uk/claim-redundancy. To claim for loss of notice pay, see: https://www.gov.uk/claim-loss-notice.
- Understand the calculation: You may find it helpful to review what payments you can expect and when you can expect to receive them. For this see: https://www.gov.uk/government/publications/redundancy-payments-from-the-insolvency-service/explaining-your-redundancy-payment.
- Await your payment: The Insolvency Service aim to process claims and make payments within 6 weeks. Although as indicated in the report, your waiting time may be shorter than this.
Recovering Funds
It’s worth noting that the RPS also works to recover money from insolvent companies, which helps to cover some of the costs it pays out. Last year, ÂŁ29 million was recovered, a worthwhile contribution to the support system.
Conclusion
If you’ve lost your job due to your employer’s insolvency, the Redundancy Payments Service is designed to provide financial support and help you through this difficult time. Understanding your rights and the support available can make a significant difference as you navigate the challenges of job loss. For more detailed information and to start your application, visit the government’s RPS website.