Travel Agency employees advised to bring claims to employment tribunal

Travel AgencyFormer employees of a travel agency have had their applications for redundancy pay from the Redundancy Payments Office denied; the government decided that the workers’ former employer Vacation World – which ceased trading in May 2012 – is not insolvent and so is able to make redundancy payments. The issue of insolvency is a complicated one; It may take into account ability of the company to pay, net assets, etc.

Upon being made redundant - and in light of their former employer going into administration - the employees had applied to the Redundancy Payments Office to receive an amount of compensation for their redundancy. However, according to the government, because Vacation World was not insolvent - the Redundancy Payments Office was not obliged to pay the employees.

‘You are not entitled to this payment because we believe your employer is not insolvent,’ read a letter from the Insolvency Service, addressed to the employees. ‘You may wish to consider applying to a court for an order making your employer formally insolvent.’

The letter pointed out that redundancy payments can only be awarded to employees from the Redundancy Payments Office if the employer is unable to facilitate the payment.

‘As these requirements have not yet been met in your case, in order to obtain payment you should apply to an employment tribunal.’

What is employment law? If you wish to speak to an employment law lawyer regarding matters of fair employment, work regulations, labor relations or require advice and assistance on any area of UK employment law, then please do not hesitate to contact Sam Riley Law on 0333-577-7037.
July 10, 2012
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