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Your employer is insolvent if it cannot pay its debts.

They might:

• make you redundant
• ask you to keep working
• transfer you to a new employer (if the business has been sold)

There are different types of insolvency:

• administration
• liquidation
• bankruptcy
• receivership
• company voluntary arrangement
• individual voluntary arrangement
• debt relief order

Check if your employer is insolvent.

Depending on your situation, you can apply to the government for:

• a redundancy payment
• holiday pay
• outstanding payments like unpaid wages, overtime and commission
• money you would have earned working your notice period (鈥榮tatutory notice pay鈥�)

You have different rights depending on whether your employer:

• makes you redundant (dismisses you)
• asks you to keep working
• transfers you to a new employer (if the business has been sold)

Your employer must have a consultation about why redundancies are happening and if there are any alternatives - they do not have to consult you directly.

If you鈥檙e made redundant

You鈥檙e made redundant if you鈥檙e dismissed from your job.

The person who is dealing with the insolvency (the 鈥榠nsolvency practitioner鈥� or 鈥榦fficial receiver鈥�) must tell you how your job is affected and what to do next.

They鈥檒l also give you a:

• RP1 fact sheet
• 鈥楥N鈥� (case reference) number to use when you apply for money you鈥檙e owed

You can apply to the government for:

• a redundancy payment
• holiday pay
• outstanding payments like unpaid wages, overtime and commission
• money you would have earned working your notice period (鈥榮tatutory notice pay鈥�)

You can also apply to the court for compensation if you think you were dismissed unfairly or not consulted properly.

Compensation because you were dismissed unfairly

You can make a claim to the employment tribunal if:

• you were dismissed unfairly (鈥榖asic award鈥�)
• there was not a consultation about your redundancy (鈥榩rotective award鈥�)

You鈥檒l be claiming against the Secretary of State for Business and Trade and your former employer (鈥榯he respondents鈥�).

If you continue working after the insolvency

You might be asked to continue working for your employer after they become insolvent.

You鈥檒l still be eligible to claim for redundancy pay and other money you鈥檙e owed if you鈥檙e made redundant at a later date.

You cannot claim holiday pay, wages, bonuses or commission that you鈥檙e owed between the day of the insolvency and the day you were dismissed.

If you鈥檙e transferred to a new employer

You cannot claim any money from the government if you were transferred before your former employer became insolvent.

If you were transferred afterwards, you can apply for redundancy pay, statutory notice pay and outstanding payments such holiday pay, wages, commission and bonuses.

What money you鈥檙e entitled to depends on:

• how long you were employed
• what was in your employment contract
• your age

Payments are capped.

Redundancy pay

You鈥檙e normally entitled to redundancy pay if you:

• have been made redundant
• were an employee
• were continuously employed by the insolvent business for 2 years or more

You鈥檒l get:

• half a week鈥檚 pay for each full year you were employed and under 22 years old
• one week鈥檚 pay for each full year you were employed and between 22 and 40 years old
• one and a half week鈥檚 pay for each full year you were employed and 41 or older

Redundancy payments are capped at 拢700 a week (拢643 if you were made redundant before 6 April 2024).

You can get a payment for a maximum of 20 years that you were employed at the business.

Calculate your redundancy pay.

Wages and other money you鈥檙e owed

You can apply for unpaid wages and other money you鈥檙e owed by your employer, for example bonuses, overtime and commission.

You鈥檙e only entitled to money that鈥檚 in your employment contract.

You鈥檒l get up to 8 weeks of money you鈥檙e owed. It counts as a week even if you鈥檙e only owed money for a few days.

Payments for wages and other money you鈥檙e owed are capped at 拢700 a week (拢643 if you were made redundant before 6 April 2024).

You pay income tax and National Insurance when you get unpaid wages and other money you鈥檙e owed. You might be able to claim a tax refund if you鈥檝e paid too much.

Holiday pay

You can get paid for:

• holiday days owed that you did not take (鈥榟oliday pay accrued鈥�)
• holiday days you took but were not paid for (鈥榟oliday pay taken鈥�)

You鈥檙e only paid for holidays you took or accrued in the 12 months before your employer became insolvent.

You鈥檒l only get payments for up to 6 weeks of holiday days. Holiday pay is capped at 拢700 a week (拢643 per week if your employer went insolvent before 6 April 2024).

You pay income tax and National Insurance on your holiday payment. You might be able to claim a tax refund if you鈥檝e paid too much.

Statutory notice pay

You鈥檙e entitled to a paid notice period when you鈥檙e made redundant, even if it is not in your contract.

You can claim for statutory notice pay if you:

• did not work a notice period
• worked some of your notice period
• worked an unpaid notice period

Your statutory notice pay is worked out as one week鈥檚 notice for every year you were employed, up to a maximum of twelve weeks.

Payments are capped at 拢700 a week (拢643 if you were made redundant before 6 April 2024).

Pension contributions

Contact the insolvency practitioner or official receiver if you鈥檙e missing contributions to your pension.

You鈥檙e eligible to apply if:

• you were an employee
• you鈥檙e a UK or EEA national (or a foreign national with permission to work in the UK)

1. Apply for redundancy, unpaid wages and holiday within 6 months of being dismissed. You request to claim for loss of notice pay (鈥榮tatutory notice pay鈥�) in your application.

2. If you requested to claim statutory notice pay, you鈥檒l get sent a letter telling you when you can apply.

Claiming for redundancy, unpaid wages and holiday pay

You can apply as soon as you鈥檝e been made redundant. The person dealing with the insolvency (the 鈥榠nsolvency practitioner鈥� or 鈥榦fficial receiver鈥�) will give you a 鈥楥N鈥� (case reference) number. You cannot claim without the CN number.

You must apply for redundancy pay within 6 months of being dismissed.

Apply for redundancy, unpaid wages and holiday online.

Claiming for loss of notice pay (鈥榮tatutory notice pay鈥�)

You need an 鈥楲N鈥� reference number to make a claim. It鈥檒l be sent after your notice period would have ended. This is usually no more than 12 weeks after you鈥檙e dismissed.

Employees at the same business can have different notice periods.

Once you have the LN reference number, claim online for loss of notice.

Help completing the online forms

Contact the Redundancy Payments Service if you have queries about completing the online forms. You鈥檒l need your case reference number or National Insurance number.

It usually takes up to 6 weeks to get your payment but can take longer.

Your information will be checked against the employer鈥檚 records, for example how much holiday you had accrued. You鈥檒l only get a payment if the records show you鈥檙e owed money.

Any benefits you鈥檙e eligible to claim will be deducted from your statutory notice payment (even if you did not claim them).

If your application is rejected

Contact the Redundancy Payments Service - they鈥檒l explain why your claim was rejected.

You can make a claim to the employment tribunal if you disagree with the decision. You鈥檒l be claiming against the Secretary of State for Business and Trade and your former employer (鈥榯he respondents鈥�).

Help and advice

Contact the Redundancy Payments Service if you need help. You鈥檒l need your case reference number or National Insurance number.

Help finding a new job

Contact your local Jobcentre Plus and ask for their Rapid Response Service for help finding a new job.

You鈥檒l be able to use the service for up to 13 weeks after you鈥檙e made redundant. You must have started your notice period to be eligible.

Get help to find a new job, improve your skills and claim benefits.