To put director redundancy claims into perspective the Redundancy Payments Service paid out £485,000,000 in successful redundancy claims in the financial year April 2019 to March 2020 a substantial proportion of which would have been paid to company directors.

Despite this, many directors – with companies going through a formal insolvency procedure such as liquidation – do not realise they have a legitimate claim to redundancy. Of those that are aware of their statutory rights, many have their claim rejected because they fail to make their claim correctly. In fact, when directors attempt to claim redundancy themselves without professional assistance, we estimate 50% of these claims are thrown out by the Redundancy Payments Service. The slightest error, inconsistency, blank, or misnomer will lead to an instant redundancy claim rejection.

In contrast, our claim success rate is 94%*.

Early advice is key. Taking action after your company is liquidated could prevent you from claiming your statutory entitlements either in part or in full that you are entitled to – there is little time to waste.

*RCUK undertake a thorough investigation of all claims before submission. Only claims that qualify with the correct supporting evidence are submitted to the RPS.