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What is director redundancy?

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Understanding Director Redundancy


Written by Jonathan Munnery

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.

Although nobody goes into business expecting their company to fail, UK Liquidators were supportive and helpful through the whole liquidation process, and I would have no hesitation recommending them to others in the same position.
Paul Winter
|
Director
Common Liquidation Questions
Where does the money for director redundancy come from?

Typically when a company makes redundancies, it is the responsibility of the company to pay for all redundancy costs.

How much redundancy could I claim?

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.

Do I qualify for director redundancy?

In order to qualify for director redundancy, you must meet a set criteria.

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