YOUR VIEW What are your rights if your employer; What are your rights if your employer goes bust? Joe Michna of Citizens Advice Hartlepool explains.
QWHAT is the National Insurance Fund? A. If an employee is owed money by a bankrupt employer and had his/her contract ended, s/he may be able to claim payments from the National Insurance Fund. The fund is operated by the Insolvency Service's Redundancy Payments Office.
Q. How does an employee make a claim? A. Normally the employee would claim through a receiver or liquidator. If this is not possible then the employee can make a direct claim to the Insolvency Service using form RP1, available on the Insolvency Service website. Where a receiver or liquidator has been appointed, they should give all employees who are dismissed an RP1. Q. What kind of claims can an employee make? A. There are a number of claims an employee can make. They include: | up to 8 weeks arrears of pay | up to 6 weeks arrears of holiday pay | up to 12 weeks' notice payments | statutory redundancy payments | unpaid pension contributions Q. How are payments made by the Insolvency Service? A. Payments made by the Insolvency Service that compensate an employer for arrears of pay, holiday pay and notice payments are paid after the deductions of national insurance and income tax. The upper limit for these payments are PS489.00 a week Q. How are unpaid Statutory Redundancy Payments calculated? A. Statutory Redundancy Payments are paid gross - that is without the deduction of any income tax and national insurance. The upper limit for these payments is also PS489.00 a week even if a redundancy employee earned more than.
Q. When would notice payments be paid? A. The employee will have to wait until the end of the notice period that s/he should have been given by the employer. The Insolvency Service will send the employee form RP2 and this should be returned at the end of what would have been his/her statutory notice period Q. How can I contact the Service? A. The Redundancy Payments section of the Insolvency Service Helpline is 0330 3310020, or email at: redundancypayment firstname.lastname@example.org | |Your local Citizens Advice office can also offer advice.