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WO toolkit 2012 complete.pdf - GMB

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SECTION 5.39<br />

39. Who pays my redundancy pay if my employer becomes insolvent?<br />

If your employer is insolvent redundancy payments count among those debts that take priority over<br />

others.<br />

If your employer fails to pay your statutory redundancy payment,you may apply to the Department of<br />

Trade and Industry for payment out of the National Insurance Fund.<br />

It is quicker to apply to the DTI on your employer’s insolvency than to wait for payment(if any)from the<br />

Insolvency Administrators.If the DTI pays out,they will then claim as much as possible from the<br />

Insolvency Administrator.You cannot claim the same amount twice.<br />

Make a claim to the DTI within six months of your redundancy.<br />

Your full redundancy payment should be paid out of the National Insurance Fund.<br />

Any question about the employer’s liability to pay or the amount of the payment due should be referred<br />

to an Employment Tribunal.There is no time limit.<br />

REMEMBER: there may be more than one person affected by this issue.<br />

Consider calling a meeting to advise,recruit and organise.

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