director redundancy and claiming JSA?

[davesquestion2009]

Hi can anyone help with my question please, I am a 50% shareholder Director in a small ltd company which has been in business over 20 years, we have just lost a couple of large contracts on top of the general downturn and I can not attract any new business and what with very high stress and anxiety levels am now feeling quite unwell, the business could fold unless one of us (2 directors) leaves ie. make one of ourselves redundant, with small redundancy payment, does anyone know if i would be disqualified from claiming job seekers allowance benefits because it looks like I left my job voluntary which is not allowed for claiming this type of benefit? by the way i have no savings only a current account mortgage which is negative with my mortgage balance, and my partner is a housewife,

the JSA benefit would help me out short term

 

 

I cant seem to find this info out anywhere else,

many thanks for you help

[ErikaPNP]

Each case such as this is decided on individual circumstances. It doesn't disqualify you from claiming, nor from being entitled. What they can do is sanction your benefit for up to 26 weeks.

[steven4064]

Has your bank added significant bank charges - I know this isn't your main concern at the moment but we have found that some small businesses who are having a rough time financially have had significant amount sof money taken off them by their bank in (unlawful) charges. If you have, we can help you get them back

[davesquestion2009]

thanks very much for your reply Erika,

so there is no definate rule then and I would only know the answer after they look at it and inform me of their decision, is this correct?

many thanks

[ErikaPNP]

Yes, that is correct. They can sanction a claim for a period of time from 2 weeks up to 26 weeks. In some cases, no sanction is applied at all. The benefit delivery officer will consider the individual facts of your case and reach a decision as to whether your claim should be sanctioned, and if so, for how long.

 

You do have the right to appeal a decision to sanction.

 

If you leave a position voluntarily, they look at whether you had "good cause" to do so.

 

Steven will also advise you in regard to bank charges if this applies - see his post above.

 

Regards

Erika

[davesquestion2009]

Hi Erika, just one other thing that I am worried about, perhaps if you can help,

although I have no savings my mortgage current account which is negative does show I have the facility to draw out on my mortgage account another , 30k which of course is not savings it's just where I have over paid for the last 3 years or so, but will they say the facility is there so use it! before you claim?

 

I am worried sick about all this as I thought JSA would help me whilst I searched for a new career,

 

many thanks for your time