Seven Year High Redundancy Pay Out

Posted on Feb 27, 2020. by NTI

It has been reported that the amount the Insolvency Service paid out to employees via the Redundancy Payments Service hit a seven-year high in 2019.

Figures obtained by property advisor Altus Group shows a 16% increase on the amounts paid when compared with 2018.

This is likely attributed to an increase in the number of insolvency cases last year (as reported with the insolvency statistics), a high number of retail casualties and the failure of Thomas Cook.

It is reported that Altus requested the information under the Freedom of Information Act and the amount that was paid out last year by the RPS was £346 million. With £223 million attributed to redundancy, £64 million for pay in lieu of notice and the remaining £59 million was arrears of pay and holiday.

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