Redundancy/employment tribunal judgement order/insolvency service

[kingsallycafac]

Afternoon everyone,

 

Just a question really as follows:

 

I was made redundant 31/07/2015 and followed all the correct procedures. Went to employment tribunal and won my case, which was not contested. Recieved my judgement order on 18/03/2016, which has not been settled. I found out that my previous employer has since closed the business and as of yet not legally gone bankrupt, called in an insolvency practioner nor liquidated the company.

 

I applied to the insolvency service which is going through now and I received a letter saying that they will pay the redundancy as per employment judgement order and then go after my former employer for the monies.

 

I was awarded the judgement for redundancy along with a calculation date of 8% simple interest payable on a day to day basis starting 01/04/2016. So my question is will I get the interest that has occurred or just the statutory redundancy payment.

 

Many thanks in advance

[ericsbrother]

you should get the flat 8% calculated as £x.xx per day for YY days. This is not compounded so you dont get interest on the interest just becasue it has dragged on (unlike when banks charge you). However, I note that they are going for a settlement date of a year after the judgement date so question this and insist that you remain listed as a creditor for the interest between the 31/07/15 and the 1/04/16 assuming that you asked for this in your original claim

[kingsallycafac]

Thank you for your response.

 

I thought that as it will now be the redundancy payments service now having to pay me, that I would only receive the statutory amount and not any interest that has now built up ! This will be extremely helpful as company owe me outstanding wages etc that I will not receive !

[ericsbrother]

Then make sure you are listed as a creditor for that money as well. You will be near the top of the heap and if the insolvency bods find some cash or asstes then you will get a payout based on percentages of what the asstes are to what is owed.

The govt will be the first in line for taxes and the redundancy monies due, followed by secured creditors, which are normally banks but also often directors who have made directors loans to the company.