Guidance

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.

From:
The Insolvency Service
Published
23 March 2020
Last updated
1 June 2022 — See all updates

Applies to England, Scotland and Wales

Documents

Financial assistance for employers unable to pay statutory redundancy payments

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Details

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
Last updated 1 June 2022 + show all updates

  1. 5. How to apply. Clarification that we require all required information to assess an application

  2. Updated guidance and added links to new forms

  3. First published.