How long does it take?
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The length of time between being made redundant and having your claim paid can vary. The usual period is between 3 and 12 weeks. If there is a problem with your claim then it can take even longer. It is also possible that some or all of your claim may be rejected.
The Redundancy Payments Service, RPS, states that it aims to pay 80% of claims within 3 weeks of receiving the claim, and 93% of claims within 6 weeks of receiving the claim.
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Why can it take longer than this?
Before the RPS will pay a claim it must confirm with the Insolvency Practitioner that your claim matches the information held by your Employer. The Insolvency Practitioner obtains the information held by the Employer for all employees, and sends this information to the RPS.
The RPS does not start the clock on the payment process until after it has received this information from the Insolvency Practitioner. The time period between you being made redundant and your claim being paid can be delayed for a number of reasons:
- A delay in the Insolvency Practitioner being appointed. If the Company is being placed into Creditors Voluntary Liquidation, the formal appointment of the Insolvency Practitioner may be up to 21 days after you have been made redundant. The Insolvency Practitioner will usually only send the required information to the RPS once he has been formally appointed.
- The Insolvency Practitioner may have difficulty in accessing the employment records. This can be because:
- the directors of the company are not co-operating in providing the information,
- an outside payroll agency who holds the records for the company is not providing the information,
- another third party, such as a landlord, has barred physical access to the information.
- Any small delays in the Insolvency Practitioners office can have a knock-on effect and further delay information that is being sent to the RPS.
Other reasons for delay
Sometimes there is a difference between the information the Company provides to the RPS and the information that you have provided. If this is the case, then the RPS may require more information from you.
Remember also that your money will come in 2 payments.
The first payment is redundancy pay, arrears of wages and unpaid holiday pay.
The second payment is your notice pay. This can only be applied for after your notice period has finished. The good news is that the RPS normally pays the notice pay claim within 14 days after the application for notice pay has been made.
Why might my redundancy or arrears of wages claim be rejected?
The RPS might reject your claim for a number of reasons:
- If you are not regarded as an employee for RPS purposes. Click here to clarify your employment status.
- If you do not respond promptly to correspondence from the RPS.
- If there are differences between the information provided by you and the information provided by your employer.
- If you are not entitled to claim. For example, if you have already been paid your entitlement by your employer.
- If the RPS has provided a reference number, but the company has not been placed into formal insolvency.
- If the RPS believes that your employment has been transferred to another employer. More Information on TUPE.