When a company is faced with severe financial difficulties and has no option but to go through liquidation, it is well-known that its employees will be made redundant and eligible for redundancy pay.
However, what is less recognized is that the directors of a company that enters liquidation can also claim redundancy as they are often considered employees of the business as well.
Director redundancy operates similarly to employee redundancy and eligibility is determined based on specific criteria, including the individual’s age and tenure with the company, which determine the amount of redundancy pay they are entitled to receive.