Financial assistance for employers unable to pay statutory redundancy payments

Guidance about the financial assistance available from the Redundancy Payments Service for employers who are unable to pay their employees redundancy pay.



If an employer cannot afford to pay their employees redundancy pay, they can apply to the Redundancy Payments Service (RPS) (part of a government agency called the Insolvency Service) for financial assistance.

If approved, the RPS will make statutory redundancy payments directly to the redundant employees on the employer’s behalf.

This guidance is to help employers understand whether the scheme is right for them.

Published 23 March 2020