Director redundancy claims
One of the most overlooked rights in a company insolvency is that many directors can claim redundancy pay, and other statutory payments, when their company is liquidated. The reason it is missed is that people think of redundancy as something only employees get. But if you were genuinely employed by your own company, under a contract of employment, paid through PAYE, and with at least two years of continuous service, you may qualify as an employee for these purposes and claim from the government-backed Redundancy Payments Service, just like any other member of staff. There is no minimum weekly hours requirement, so part-time working directors can qualify on the same basis. Successful director claims average several thousand pounds and can be considerably more, and the money comes from the National Insurance Fund, not from creditors. You can also often claim unpaid wages, holiday pay and notice pay. Because eligibility turns on the detail of how you were engaged, it is worth checking carefully. Our calculator gives a quick estimate. Redundancy Payments Service; gov.uk
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It does not come out of creditors pockets
Because the payment comes from the National Insurance Fund rather than company assets, claiming does not reduce what creditors receive. It is a statutory entitlement, not a trick. Use our director redundancy calculator for an estimate, then a practitioner handling the liquidation can help you claim.
The numbers behind this
See the live official figures on our UK company insolvency tracker. Redundancy claims follow liquidations; this is the current volume. All figures come from named official sources on our UK business distress data hub.
Common questions
Can a company director claim redundancy?
Often yes, if you were genuinely employed under a contract, paid via PAYE, and had at least two years continuous service. There is no minimum-hours test. Eligibility depends on the facts, so it is worth checking.
How much can a director claim?
Statutory redundancy is based on age, length of service and weekly pay up to a cap, so claims commonly run to several thousand pounds, and you may also claim unpaid wages, holiday and notice pay.