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Employees and Preferential Claims

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Overview

This section provides the procedure to enter employees’ claims as preferential and unsecured creditors.  This section assumes that you have knowledge of different creditor priorities.

Employees' claims

Creditors’ ledger is accessible by going to Financials > Creditors. This window allows you to enter creditors’ proofs, adjudicate on their claims, pay dividends, run reports, etc.

Creditor claims have different entry forms depending upon the nature of the claim.  In this section, we will only enter claims for employees, whose claims for arrears of pay and unpaid or outstanding holiday rank as preferential.

The entry for the Redundancy Payments Office ("RPO") may or may not have been entered, depending on the selection made at the appropriate page in the job set-up wizard. An entry for the RPO will always be required to hold the employees' subrogated claims.

Employees' unsecured, non-preferential claims, for redundancy pay and pay in lieu of notice (or contractual notice pay) may also be entered here.

Preferential Creditors screen.png

Other types of claims, e.g.:

  • Secured creditors
  • Priority creditors
  • Unsecured creditors
  • Deferred creditors
  • Contingent creditors.

are dealt with in sections 4 and 5.


Topics
  • To assist data entry for new Jobs, the system allows for importing of employee’s information from provided Excel file formats. When importing creditor claims, Counterparty information is also imported.  As part of the importation process imported Counterparties may be matched with existing Counterparty records. Importing employee claims creates new employees in the Job.
  • The system caters for the priority of preferential creditors’ claims. To capture all the information necessary in processing their claims, employee claims are entered on a separate entry form to other creditors. You may also import Employee Creditor claims.  We will look at both methods.
  • As the employees’ claims will effectively be the balance of their actual claims less the Redundancy Payments Office’s (“RPO”) subrogated claim, we will start by entering the RPO’s claim onto the system. In this example, it is assumed that the RPO’s claim, and therefore the employees’ individual claims, agree with that originally entered.
  • It is often the case that the RPO’s claim will not agree with the figures calculated by the system.  You may amend the individual details if you need to adjust the RPO’s claim to take account of any discrepancy between the calculated claim and the RPO’s proof claim.
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