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  • RE: Maternity Leave & Redundancy Payment after Company Closure.

    Thanks for the reply. That's helped a lot.
  • Maternity Leave & Redundancy Payment after Company Closure.

    We have a long term employee who is going on Maternity Leave on the 9th of April. We've taken the decision for our Company to cease trading on that day (she's a major income earner). No Company activity will take place after this date and our Accountants will then begin the process of Company closure. We're we to continue trading, we'd normally pay the Maternity pay through our Monthly Payroll and and recoup it +3% through an adjustment to our ongoing PAYE & NI Employer Contributions. However, apart from the normal winding up period, the Company will no longer be in existence, so there'll not be a Legal Entity to hold and make the payments from. How should this this handled? Further, though we have funds already allocated for her Redundancy, we've been told that this must be paid at the end of her Maternity period as she can't be Redundant and still Claim maternity pay. Is this right? The same question about company closure and payments also applies. We could pay her all of her redundancy payment AND her full entitlement of Maternity pay when she goes on Maternity leave on the 9th of April. However, unless this can be reclaimed straight away as an adjustment to our overall PAYE & NI liability, it'd potentially leave us insolvent if it wasn't possible to reclaim this. Would this be reclaimable straight away? How should we handle these issues please?