If my employer goes into liquidation what are my entitlements

Hi All,

If my employer (sole trader) goes into liquidation, I understand that I am able to claim redundancy from DETA. Is this correct.

I am wondering what are my entitlements regarding holiday pay and arrears of pay. Also if I did not receive any notice, am I entitled to pay for statutory notice period also.

Any replies are appreciated!

Hi Joanne,

Your employer cannot go into liquidation as he/she is a sole trader!

In case of liquidation the DETE will cover your arrears of wage, holiday pay, minimum notice and statutory redundancy. However, the DETE cap holidays at 20 days per annum and also your weekly wage is capped at €600.

Also, the DETE are swamped at the moment and what used to be a 4 week wait is not closer to 12 weeks!

Being a sole trader your boss is personally responsible to pay you however if he/she fails to do so you can bring your case to the employment appeals tribunal and then if you get a positive decision you can make a claim to the dete but this will take months.

Hope this is of assistance.

Regards

Stephen

Many thanks Stephen, it is of assistance indeed!

Regarding liquidation, I meant if he cannot pay his debts and is declared bankrupt and, can I apply to DETE ?

You should receive 3 copies of an RP50 to sign your employer will sign it saying he can not pay therfore you will be claiming th lump sum payment from DETE at present cases for lump sum payments are not being looked at for six months then if your employer has not sent in the appropriate documentation ie accounts etc showing that they can not pay the department will then advise you to fill in a TIA form and send it into Employment Appeals Tribunal. At present in my area it is taking 31 weeks for a case to be heard by the tribunal. Following this process it could take up to 18 months for you to recieve your payment.
I would advice and have advised clients that if they do not get their redundancy payment within 4 weeks fill in a TIA send it to the EAT at least this way you may save months of waiting if you get your money in the meantime just write to the secretary of EAT and inform them.
Word of warning read the RP50 carefully before signing it you don't want to sign that you have received your money when you haven't.
Hope this helps, good luck.