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Companies in Administration: Information for employees

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.

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This covers redundancy and other contractual payments, within limits, and aims to pays 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. 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.

The statutory scheme does not cover payments due to self-employed contractors or agency workers.

Employees should contact the administrator of their former employer in the first instance. Agency workers should contact their respective agencies.

Your rights if your employer is insolvent

Published 29 December 2014
Last updated 2 April 2015 + show all updates
  1. Updated to provide general guidance
  2. Updated text.
  3. Updated text.
  4. Added contact telephone number
  5. Amended to add clarity for agency workers and contractors.
  6. First published.