What happens when a company goes bust, and the employees are left without a redundancy payout?

Under normal circumstances, the payment of redundancy is done when a job role is no longer required. The terms for redundancy pay is based on the conditions written into the employee handbook. However, what happens when there is no money in the company – as when it goes into administration?

This is where the Government can help with the Statutory Redundancy Payment Scheme.

Its a safety net which does pay a few pounds for every week worked, up to a fixed level. It won’t make anyone’s fortune, but it should at least keep the wolf from the door for a few weeks!

Use the Ready Reckoner Calculator here

Originally posted 2009-01-05 12:07:42.