What can I do if my redundancy pay application was rejected or too low?

The situation

I am living in England and I am currently struggling after being made redundant from my local manufacturing firm last November. Because the company went into liquidation, I applied for statutory redundancy pay through the government to help cover my mortgage and basic living costs. I submitted my formal application back in January, and I finally received a letter from the Secretary of State on the 15th of March informing me of their decision. Unfortunately, the letter stated that I am only entitled to £1,200, but based on my years of service and my previous pay cheque, I am certain that the correct amount should be closer to £2,500. I have already tried calling the department to dispute the calculation, but they just told me the decision is final and they won't change it. I am feeling very stressed about this shortfall. I know I need to take this further, but I am not sure what the process is for challenging the amount they have offered. Is there a specific court or tribunal I can go to if I believe they have underpaid me, and how much time do I have to lodge a formal complaint before it is too late?

Detailed Analysis

Because your former employer went into liquidation, you applied for statutory redundancy pay from the government. Since you believe the £1,200 offered is incorrect and should be closer to £2,500, you have a legal right to dispute this.

Under the law, you can present a complaint to an employment tribunal if you believe "any such payment made by him is less than the amount which should have been paid"^[1]. An employment tribunal is a specialized court that hears disputes between employees and employers or government bodies regarding employment rights.

There is a strict deadline for this action. The law states that a tribunal will not consider your complaint unless it is presented "before the end of the period of six months beginning with the date on which the decision of the Secretary of State on the application was communicated to the applicant"^[1]. Since you received your decision letter on 15 March, you must lodge your formal complaint before 15 September to ensure you are within the standard time limit.

If the tribunal agrees with you, they have the power to fix the error. They can "make a declaration" that the Secretary of State should pay more and "declare the amount of any such payment which it finds the Secretary of State ought to make"^[1].

It is important to note that while the law allows for extensions if it is "not reasonably practicable" to meet the six-month deadline, you should not rely on this and should aim to file as soon as possible^[1].

Statutory Citations

Related Questions

• Can I refuse a new job offer from my employer and still get my redundancy pay?
• Is there a limit on how much my redundancy pay can be?
• How much redundancy pay can I claim from the government if my employer won't pay?
• What happens if my company goes bust and won't pay my redundancy?
• What happens if my boss refuses to pay my redundancy money in England?