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Senior Partner
Senior Partner, Solicitor
Category: UK Bankruptcy Law
Satisfied Customers: 13326
Experience:  30 years in commercial law
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Morning. My employer went into liquidation on the 26th November

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Morning. My employer went into liquidation on the 26th November 2013 and I was made redundant. The firm (liquidation specialists) dealing with the liquidation process sent me a letter in mid July which I have just received. (I live in rural France and it is semi-common place to not receive letters from the UK at all).
The firm have advised that I will only receive pay for 1 week and that is to be paid 2 months after the date of the letter. The letter included a statement advising I had to contact them within 21 days of the date of the letter if I wanted to dispute the amount they are going to pay. However, I am owed for 1 months work for which I was not paid and lieu of notice which is 3 months.
I tried to contact the person dealing with the claim in the firm yesterday but he was not available.
My question is, is it too late to contest the value they want to pay me as per the afore mentioned reasons? Is there any prescribed legislation that can help me in this cause please?
Any help would be greatly appreciated.
With Thanks,
I take It you do not mean November 2013? If the company had gone into liquidation then the liquidator should tell you how you can claim pay and redundancy from the National Insurance fund -assuming you are employed in the UK. If you are employed in France then you may not be eligible.You have a claim against the company for your pay, notice period and redundancy pay . You have three months after termination to bring a claim in the employment tribunal but there is no point in doing that if the company is in insolvent liquidation . So no you are not to late to contest this.Did they explain why they were only offering you 1 week?
Customer: replied 4 years ago.

Good evening,

Thank you for coming back to me so quickly.

I did mean 2012 - please excuse the typo.

I made a claim to the NI fund and received a small payment in January of this year.

I was employed in the UK by a UK company and I commuted to and fro from here in France.

As a primary creditor, being an employee, I know they have sufficient funds available from the debtors ledger (I was the Sales Director (by title only) so I had access to this information before the company was put into voluntary liquidation.

The letter I received provided no detail as to why they are only going to pay me 1 week and that figure was subject to the deduction of the NI fund monies I was paid in January.

The reason for wanting some advice is that all does not appear to be "open book" with the bankruptcy firm (Duff & Phelps of Manchester) and my main concern is that due to my lateness in contacting them on Monday next week, they will state that they have arranged the disbursements and I am too late to do anything about it because the 21 days from the date of their letter has more than expired, through no fault of my own.

Therefore, due to my last statement, in your opinion what reasonable grounds do I have to go back and contest the offer of payment please?

With Thanks,


It is difficult to comment really without access to the figures and so on. The fact is that employees are preferential creditors for 4 months pay so if there is cash you ought to be entitled to at least that. Yes they can deduct the relevant part of the National Insurance Fund payment but you need I think to contact them and ask for an explanation. Ultimately they will have to produce accounts and a claim will not be statute barred for some time.
Customer: replied 4 years ago.

Thank you.

I feel much more confident in approaching them on Monday morning to contest the matter.

Should I not get to where I need to be following further dialogue with this organisation, as the service they have provided todate has been very poor, could I engage you/ your organisation directly for further legal support?

With Thanks,


Hi Chris
You are welcome to come back when you have some more information but the experts like me are independent lawyers and we are only permitted to deal with you through this site on question and answer basis but please feel free to post further questions for my attention
Senior Partner and other UK Bankruptcy Law Specialists are ready to help you
Customer: replied 4 years ago.

Of course, I understand.

Thank you very much indeed and I shall be back in touch via this site should the scenario not resolve itself.




Customer: replied 4 years ago.

Good morning,

Thank you again for your help on Saturday and I have now just spoken to the insolvency practioners, so please accept my apologies in advance for having to come back to you, but as anticipated, the information I have just been given is contrary to the advice you have provided.

I would therefore like to ask for further advice please and will happily provide a "bonus" via this website for your additional time of course.

I have just been told that the Gross Arrears Of Pay element of £800 (as per the letter I received on Friday) will be paid soon and that this is the statutory limit that they have to pay as a primary creditor. This is subject to deductions of tax, NI and a small payment by the RPS I received in February. The remaining proportion of monies that are outstanding for the period of non-paid work (company went into liquidation one day before payday) and any pay in lieu will be calculated from the non-preferential pool of creditors (including suppliers etc) and disbursed early in 2014 once the debtors ledger has been completely cleared down.

I have asked for a copy of the creditors and debtors ledger which she will forward by email within the next day or so. However, she did make the point that this request is outside of their legislatory commitments but will do so on this occasion.

Is this all correct please?

With Thanks,

It is correct that the limit is £800 for the amount for which you are a preferential creditor plus any accrued holiday pay. But that that limit is on the amount that you are a preferential creditor for They should not be making deductions from it. You are entitled from the NI fund or the Redundancy payments office 8 weeks pay at the statutory level plus notice and your redundancy. But if your actual pay is lot more you can still claim that and you are still a preferential creditor up to £800.

it is correct however that any amount above £800 is unsecured
Customer: replied 4 years ago.

Thank you.

To be clear in my response to them then;

- They should not be deducting tax, NI or the Redundancy Pay Service amount from the £800 they want to pay me as a preferential creditor?




The limit of £800 is on the amount that is due to you as a preferential creditor. Whilst they can deduct sums that are properly deductible this should be done before applying the £800 cap not afterwards so if you are due £2k in salary then they can deduct tax and Ni if due but if leaves a balance of 1k you can still claim . The gross arrears of pay calculation is for the purpose of the Redundancy Payments office and has no relevance to your claim against to your rights as a creditor.
Customer: replied 4 years ago.

In understand. Regarding your statement about tax etc being deducted before the £800 cap (what I receive net), can you please advise where I can find some "proof" to substantiate this because what you are proposing differs from what I would refer to as their standard practice, this being their line of business?

If I cannot substantiate this then I have no where to go with it should they state I am incorrect.

I hope you understand and that I am not being difficult, but this will be a curve ball as far as they are concerned.



The right as a preferential creditor is set out in The Insolvency Act 1986 it is in schedule 6 which says:" Category 5: Remuneration, etc., of employees

So much of any amount which—
(a)is owed by the debtor to a person who is or has been an employee of the debtor, and

(b)is payable by way of remuneration in respect of the whole or any part of the period of 4 months next before the relevant date,

as does not exceed so much as may be prescribed by order made by the Secretary of State."

The limit prescribed by regulation is £800
Customer: replied 4 years ago.

Thank you very much.

I understand the content as provided and I will be challenging them tomorrow.

I have added a 10 euro bonus which I hope is sufficient for your additional time.

Regards and thank you again.



That is kind but I suggest you wait and see how the argument turns out.

It would be interesting to know what the numbers are - how much is your back pay , and notice and holiday pay due from the company and how much did you get from the redundancy payments office?
Customer: replied 4 years ago.

Funds already paid, no problem. I appreciate your help! The redundancy payments service turned me down, hence received some monies from the NI fund.

Once I have a definitive response tomorrow, assuming it does not get referred up the ladder, I will let you know the outcome and confirm the numbers.