City Link Redundancy Update

Ernst and Young, the Administrators for the delivery firm City Link have confirmed they anticipate a substantial number of redundancies in the coming days and will be liaising with the employee representatives on the issue.

Note that there are special arrangements for employees dismissed on the insolvency of their employer which guarantees a basic minimum of payments from the National Insurance Fund (NIF), administered by the Redundancy Payments Service in the Insolvency Service. This covers redundancy and other contractual payments, within limits, and aims to pay 80% of claims within 3 weeks after the claim is received. The payments are made from the National Insurance Fund under provisions contained in the Employment Rights Act 1996 and all payments are subject to legal limits in both the period that they can be paid and the maximum weekly amount – currently £464.00 per week.

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