Frequently asked questions
It is not possible to cover every eventuality on this site and if you have any questions or concerns these should be addressed to the relevant person; the Insolvency Practitioner, the Redundancy Payment Service, union representatives, etc. If in any doubt seek professional advice from a qualified accountant or solicitor who specialises in this area.
Below are some questions not covered in the previous sections that may arise.
Can I be made redundant if I am on maternity leave?
Employees on maternity leave retain the same rights as they do prior to any insolvency procedure. However the Insolvency Practitioner often has difficult decisions to make and it is possible that you will be made redundant.
If you are made redundant whilst on maternity leave you may wish to seek legal advice over your position to ensure you claim all relevant entitlements.
An Insolvency Practitioner has the power to make you redundant but any redress would be against your employer not the Insolvency Practitioner.
What if I am on Sick leave?
Again the Insolvency Practitioner may have to make the decision to make you redundant. The practitioner usually has limited funds to keep the business afloat and this usually involves prioritising paying employees who are generating income.
Should you be made redundant consider taking legal advice as to whether you have any potential claim against the employer.
Can I volunteer for redundancy?
Under certain circumstances you may ask the person appointed to make you redundant. When determining whether to do this the practitioner will have to consider your position within the business and whether they consider that you are required.
You should take care when considering this to ensure that you do not prejudice any rights or benefits such as mortgage protection, etc. that may not cover voluntary redundancy.
What happens if I get another job?
Your obligations in terms of notice period, restrictive covenants, etc. continue whether or not the employer is insolvent.
You should consider asking the practitioner whether they will may you redundant. If not it may be possible to negotiate a shorter notice period should this be required.
Is there insurance in place?
Employees are sometimes concerned about the employer liability insurance position. Usually upon appointment, the Insolvency Practitioner would take out cover to ensure that the assets of the business are protected and that there is adequate employee and public liability insurance in place.
This would not cover death in service insurance, medical insurance, etc. and if such policies are in place you should clarify what the position is regarding these.
Doesn’t an employer have to consult with the workforce if they are proposing redundancies?
Employers should enter into a consultation period with their employees when redundancies are expected. The periods for consultation depend upon the number of redundancies.
The periods are:
less than 20 employees – no defined period
20-100 employees – 30 days
more than 100 employee – 90 days
The position is the same if the employer is insolvent although in special circumstances it can argue that it is not practical to consult for the above timescales.
Should you not be consulted properly you may have an additional claim against the employer. In order to obtain this you will have to take the employer to an Employment Tribunal. The Advisory Conciliation and Arbitration Service (ACAS) may be able to provide advice on this and can be contacted on 08457 47 47 47.
If successful, the Redundancy Payment Service will make payments up to the maximum weekly limit of £400. Such claims are often successful as they are not contested by the practitioner concerned. Although the process is relatively simple consider taking advice from a solicitor or union.
Can I see my employee records?
The Insolvency Practitioner must allow you access to these records.
I have mortgage cover for redundancy – who signs the forms?
Such forms can usually be sent to the practitioner dealing with the case but the practitioner is not under any obligation to complete or sign them. If you are unable to obtain the employer’s signature you may be able to satisfy the insurance company by providing them with your redundancy letter.
When will I get my p45 (and/or p60, p11d, etc.)?
If the business is continuing to trade you may receive these straight away however sometimes it takes time for them to be completed. Although job/benefit centres usually request a p45 if you have not received one they can often be satisfied by the redundancy letter.
Unfortunately due to the state of some accounts of employers it may not always be possible to produce all or any of these documents.
The business is continuing to trade under an Insolvency Practitioner but I’m booked on a holiday. Can I go?
The answer to this depends on the particular circumstances of the case.
As a general rule you will not be paid for the entire period of the holiday since you will not have accrued enough holiday entitlement - the appointment of an Insolvency Practitioner freezes any accrued holiday at that point and for holiday to be paid it must be accrued after the practitioner has agreed to meet ongoing ‘qualifying liabilities’.
If you are vital to the business, you may be asked to cancel your holiday. Whether you can be made to do this will depend upon your contract of employment. In these circumstances you may need to consider whether you wish to take the holiday in light of the impact of you not being available on the business and other employees.
If you have concerns speak to the representative on site to discuss the situation and if possible come to a mutual agreement.
