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The Essential Guide to Filing for Insolvency Redundancy Compensation

20 June, 2013



When an employee is laid of from a company they have been employed by for some time, it is a good idea to look for good insolvency & redundancy advice. Law practices that specialize in this field are aplenty but there is need to choose the most reputable to stand a good chance. This is because any dues that such an employee is entitled to should be claimed as soon as possible.The first step before filing any claim is to establish that your case has adequate merit to ensure it is not thrown out. An instance where this can happen is if the dismissal happened due to misconduct provided that the employer did not use unorthodox means in the process. Your case can also be deemed inadmissible if you find employment before the redundancy notice period is properly over.

Some applications are also rejected if it can be proved that the employer made an offer of alternative employment but you could not take it. There is as well a provision that can allow the employer to compel a worker to work during their redundancy in order to recover days lost during a strike. Refusal to conform to such a directive can result in an application being rejected in spite of its other merits.

After establishing that your case is legally eligible for compensation, you need to initiate the process formally. The first step in the procedure is to write to your employer formally requesting for compensation. The law requires that employers pay out redundancy benefits automatically to deserving employees. By British law, one deserves to receive compensation if they have been laid off for four weeks in a row or six nonconsecutive weeks out of thirteen in consideration.

In cases where the former employer is declared insolvent, there is little choice for the laid off employees but to request for an alternative form of compensation. This is done by writing to the National Insurance Fund that will pay the benefits in this case. It is also possible to get paid via this means if all efforts to get the employer to pay up have failed.

In cases where the company is taking longer than is justifiable to process payments or where unnecessary hurdles are put in the way of employers making a plea, more resolve is needed. A worker is therefore well advised in such a case to contact their local trade union representative and make their grievances known.

When jobs are lost, many workers are understandably at a loss on what they could do. The pain that accompanies the ordeal can however be lessened by acquiring good insolvency & redundancy advice.



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