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HMRC internal manual

National Insurance Manual

NIM07081 - Class 1 NICs: Payments made under employment legislation: Insolvency of employer: Certain payments to be paid out of the National Insurance Fund: General

Section 182 Employment Rights Act 1996

Under the above legislation the Secretary of State for Trade and Industry(“SofSforTI”) is responsible for making certain payments out of the NationalInsurance Fund to an employee where the SofSforTI is satisfied that:

  • the employee’s employer has become insolvent; and
  • the employee’s employment has ended; and
  • the employee is entitled to payment.

The Redundancy Payments Service, which is part of the Department of Trade and Industry,carries out this function on behalf of the SofSforTI.

For details of what payments the SofSforTI can make out of the National Insurance Fund,see NIM07082.