Directors – employees or not?

When a limited company enters into liquidation, the liquidator sends all the correct information to the employees for them to complete their claim to the Redundancy Payments Office (RPO).

What about the directors?  For a director to be able to claim redundancy payments they must meet certain criteria, for example;

  • They must be on the PAYE scheme
  • They must have been working 16 hours per week or more
  • They must have a contract of employment
  • They must be owed money by the company

Once the RPO has confirmed that the director was in fact treated as an employee, his claim will be processed in the same way as other employees.

For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or should you or your company be facing financial difficulties and you need to chat, please telephone Stella Flemmings on 01377 257788 and she will make you an appointment with one of our insolvency professionals at our Driffield, Hull, Grimsby, Scunthorpe or York offices.  Our initial meetings are free and without obligation.  Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.

Because we are an independent insolvency practice, we keep our overheads low and have put systems in place to deal with simple liquidations at an affordable price of from £1,995 + VAT + Disbursements.  Our MVLs are from £995 + VAT + Disbursements.

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