Employees have the same rights as every other creditor to make a claim for outstanding wages. Although in most cases, companies do not have sufficient funds to pay employees in full, the Redundancy Payments Office (RPO) can offer significant support. The RPO allow employees to make a claim for outstanding wages, holiday pay and to make certain redundancy claims. Any agreed sums to be paid are usually received within 8 weeks of the claim being made.
What am I entitled to?
As an employee you are entitled to make a claim, It’s not guaranteed that you’ll get everything your employer owes you but you can claim for:
statutory notice pay
up to 8 weeks’ wages
up to 6 weeks’ holiday pay
unpaid pension contributions – speak to the liquidator to claim this for you
basic award for unfair dismissal
You are only entitled to claim upto £489 a week for each claim.
How do I make a claim for outstanding wages/salary?
To make a claim for redundancy you first need to make contact with the liquidator (if they have not already written to you) and they will provide you with a case reference number. Once you have received the case reference number you need to visit https://www.gov.uk/claim-redundancy. You can use the online portal to claim for redundancy and the rest will be processed by the RPO and the liquidator of the company.
What is TUPE and how will it effect me?
TUPE Regulations provide protection and preserves employees’ rights when a business or undertaking, or part of one, is transferred to a new employer. There is potential that if a part of the business is sold to another entity, that your legal rights as an employee could transfer with the sale. This would need to be confirmed with the appointed liquidator.
TUPE can also stop an employee from claiming redundancy from the RPO or Liquidator if TUPE has taken effect.
What happens to my Pension?
The Pension Protection Fund has confirmed that it will now manage Carillion’s pension schemes.
A spokesperson from the PPF said: “We can confirm that we have been notified of the liquidation. We know this news will raise serious concerns for all people involved. We want to reassure members of Carillion’s defined benefit pension schemes that their benefits are protected by the PPF.”
Please don’t hesitate to contact us for any additional advice with regard to TUPE and lodging a claim with the RPO.