Employment Issues; RIGHTS OF EMPLOYEES WHEN AN EMPLOYER BECOMES INSOLVENT

Evening Gazette (Middlesbrough, England), August 6, 2008 | Go to article overview

Employment Issues; RIGHTS OF EMPLOYEES WHEN AN EMPLOYER BECOMES INSOLVENT


Byline: Joe Michna, Hartlepool Citizens' Advice Bureau manager

Q. What is the National Insurance Fund?

A. If an employee is owed money by a bankrupt employer and had his/her contract terminated, he/she may be able to claim a payment from the National Insurance Fund. The fund is operated by the Insolvency Service.

Q. How does an employee who has been dismissed make a claim to the National Insurance Fund?

A. Normally the employee would claim a payment through a receiver or liquidator. If this is not possible then the employee can make a claim direct to the fund. Where a receiver or liquidator has been appointed, they should give all dismissed employees form RPI.

Q. What kind of claims can the employee make to the National Insurance Fund?

A. There are a number of payments which a dismissed employee can make to the fund and these include: arrears of pay pay in lieu of notice holiday pay statutory redundancy payments a basic award for unfair dismissal unpaid contributions from the employer to an occupational or personal pension

Q. How are payments made by the National Insurance Fund?

A. Payments from the Fund that compensate for arrears of pay, holiday pay and pay in lieu of notice are paid after the deduction of national insurance and income tax.

Q. How are Statutory Redundancy Payments calculated?

A. …

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