I have been made redundant by my employer but they cannot pay redundancy pay and other amounts owed to me. What can I do?
In a turnaround scenario (or closure of a business) it is possible that redundancies need to be made. How these are dealt with and how payments due to employees are made will depend on the severity of the problem.
Where the business is not formally insolvent the employer may be able to pay redundancy and other payments. However if the business does not have the resources to make such a payment it may be able to apply to the Redundancy Payment Service for a payment to be made to the relevant employees.
If payment is not ultimately made (e.g. it does not apply to the Redundancy Payment Service or does not meet their criteria) then it is likely that the employee will have to force their position through an employment tribunal. It is important to understand the timescales for taking such action to avoid being time-barred. ACAS may be able to assist and provide advice.
If successful and the business fails to pay the award, the Redundancy Payment Service would make redundancy payments, subject to limits, and would claim this from the employer. The Redundancy Payments Service is not able to make payments for unpaid wages etc. in this event.
