Director redundancy is similar to staff redundancy in that it provides a financial lifeline to individuals who have lost their job through no fault of their own. As a limited company director it is likely you are also classed as an employee, meaning if your company enters an insolvent liquidation process such as a CVL, you will be eligible to make a claim for redundancy just like your employees would. As long as you are paid a salary through PAYE, and work more than 16 hours per week for the company in a role which is more than purely advisory, it is highly likely you will have a valid redundancy claim.
Typically when a company makes redundancies, it is the responsibility of the company to pay for all redundancy costs.
The amount of redundancy you will be entitled to will be based on a variety of factors including your age, length of service, and the salary you paid yourself through the company.
In order to qualify for director redundancy, you must meet a set criteria.
At UK Liquidators, our service is fully partner-led and your case will always be overseen by a fully licensed insolvency practitioner.
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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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