Insolvent company and Statutory Redundancy Pay

jamesm96

Hi all,

I'm pleased to say that I've not had to deal with any clients becoming insolvent as yet, so I'm a little stumped about one I'm dealing with now.

Basically, the company has ceased trading due to loss of it's contract, and has neither any creditors, nor any realisable assets (there was an old computer and some old office furniture, all of which was scrapped). However, there were some staff who were all made redundant, and are entitled to Statutory Redundancy Pay.

I had been under the impression that the company could be handed over to the Official Receiver. However, having spoken with them, there's a cost of at least £1,500 involved. However, in order to receive SRP from the Redundancy Payments Service, the employer, it seems, must go through formal liquidation.

Anyone got any experience of this? Have I misunderstood?

Thanks all,

Mike.