Are you avoiding making redundancies because you cannot afford the statutory redundancy payments? Well, as an employer you may have access to financial assistance!
To clarify, you must make statutory redundancy payments to redundant employees who meet the qualifying criteria – This is usually where employees have over 2 years’ continuous service.
Failing to pay statutory redundancy payments could lead to an employment tribunal claim which can be both time consuming and costly for both parties.
If you are considering making redundancies and did not realise you had to make statutory redundancy payments, then I would suggest you get in touch with us (details below). We will also be able to ensure that you follow the correct redundancy consultation procedure.
If you cannot afford to make the statutory redundancy payments, then you may be able to apply for financial assistance with the Redundancy Payments Service (“RPS”) – This is part of the Insolvency Service, a Government agency.
Payments
The RPS are limited in what they can pay but, in most cases, they can still provide enough financial assistance to help support employers. They can pay the minimum statutory redundancy payments (which includes a maximum of 20 years redundancy!) but they cannot make payments such as holiday pay or notice.
Please note that if you are a solvent employer, the RPS will look to recover the cost of the payments.
Eligibility
You must be an employer and you must be able to provide evidence that you cannot afford to pay your employees their statutory redundancy payments. And of course, the employees must be eligible to receive statutory redundancy pay.
Please note that you are unable to apply if you are subject to formal insolvency proceedings.
How do I apply?
Simply email the RPS! RPS.FA@insolvency.gov.uk
Remember to confirm your name, that you are the employer and the main point of contact, confirm your business name, address, and the number of redundancies.
Remember, before you start considering redundancies you can always contact us on the details below to discuss your options. We can provide you with bespoke letters and scripts to assist you during the redundancy process to ensure that it is carried out fairly. Our details are support@guardianlaw.co.uk 0115 870 0150.
