If your company has escalating debts and creditors are chasing you for payment that your company cannot afford, there is little time to waste.
This is especially viable when you are facing the prospect of having to liquidate your company. Sometimes you may not be able to fund placing the company into liquidation. However, there are statutory entitlements which could prove beneficial and provide you with much needed funds.
If you are part of a company in distress, perhaps that is needing to liquidate and has been trading for over two years, there is a firm possibility you could receive redundancy from the Redundancy Payments Service.
The average claim is in the region of £10,000.
There may be other statutory entitlements you can also claim for like holiday pay, notice pay and unpaid wages.
Once you are liaising with the Liquidator of your company they can provide you with the necessary forms to complete in order to process your claim.
To qualify you would need to be an employee of the Company in addition to being a Director. You would also need to meet the following criteria:
A full contract of employment for a minimum of two years. This can be a written contract, oral or implied.
You have to have worked a minimum of 16 hours per week.
The company owes money to you, for example – funds you have injected into the company and never had repaid or PAYE arrears.