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’re made redundant You’re made redundant if you’re dismissed from your job. The person who is dealing with the insolvency (the ‘insolvency practitioner’ or ‘official receiver’) must tell you how your job is affected and what to do next. They’ll also give you a: RP1 fact sheet ‘CN’ (case reference) number to use when you apply for money you’re 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 (‘statutory notice pay’) Businesses can go through more than one insolvency. You cannot claim outstanding payments between the day of the first insolvency and the day you were dismissed, even if you did not know about the previous insolvency. 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 (‘basic award’) there was not a consultation about your redundancy (‘protective award’) You’ll be claiming against the Secretary of State for Business and Trade and your former employer (‘the respondents’). If you continue working after the insolvency You might be asked to continue working for your employer after they become insolvent. You’ll still be eligible to claim for redundancy pay and other money you’re owed if you’re made redundant at a later date. You cannot claim holiday pay, wages, bonuses or commission that you’re owed between the day of the insolvency and the day you were dismissed. If you’re 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’re entitled to depends on: how long you were employed what was in your employment contract your age Payments are capped. Redundancy pay You’re 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’ll get: half a week’s pay for each full year you were employed and under 22 years old one week’s pay for each full year you were employed and between 22 and 40 years old one and a half week’s pay for each full year you were employed and 41 or older Redundancy payments are capped at £643 a week (£571 if you were made redundant before 6 April 2023). 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’re owed You can apply for unpaid wages and other money you’re owed by your employer, for example bonuses, overtime and commission. You’re only entitled to money that’s in your employment contract. You’ll get up to 8 weeks of money you’re owed. It counts as a week even if you’re only owed money for a few days. Example If you are owed £30 of overtime per week for the last 10 weeks, you’ll get £240 (£30 x 8 weeks). Payments for wages and other money you’re owed are capped at £643 a week (£571 if you were made redundant before 6 April 2023). You pay income tax and National Insurance when you get unpaid wages and other money you’re owed. You might be able to claim a tax refund if you’ve paid too much. Holiday pay You can get paid for: holiday days owed that you did not take (‘holiday pay accrued’) holiday days you took but were not paid for (‘holiday pay taken’) You’re only paid for holidays you took or accrued in the 12 months before your employer became insolvent. You’ll only get payments for up to 6 weeks of holiday days. Holiday pay is capped at £643 a week (£571 per week if your employer went insolvent before 6 April 2023). You pay income tax and National Insurance on your holiday payment. You might be able to claim a tax refund if you’ve paid too much. Statutory notice pay You’re entitled to a paid notice period when you’re 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’s notice for every year you were employed, up to a maximum of twelve weeks. Payments are capped at £643 a week (£571 if you were made redundant before 6 April 2023). Pension contributions Contact the insolvency practitioner or official receiver if you’re missing contributions to your pension.

Apply for money you're owed

You’re eligible to apply if: you were an employee you’re a UK or EEA national (or a foreign national with permission to work in the UK) If you’re not eligible (for example you’re a contractor) register as a creditor instead. Apply for redundancy, unpaid wages and holiday within 6 months of being dismissed. You request to claim for loss of notice pay (‘statutory notice pay’) in your application. If you requested to claim statutory notice pay, you’ll 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’ve been made redundant. The person dealing with the insolvency (the ‘insolvency practitioner’ or ‘official receiver’) will give you a ‘CN’ (case reference) number. You cannot claim without the CN number. You must apply for redundancy pay within 6 months of being dismissed. The application will ask if you want to apply for statutory notice pay. Choosing ‘Yes’ does not mean you’ve applied. You’ll be told when to apply. Apply for redundancy, unpaid wages and holiday online . Claiming for loss of notice pay (‘statutory notice pay’) You need an ‘LN’ reference number to make a claim. It’ll be sent after your notice period would have ended. This is usually no more than 12 weeks after you’re dismissed. You must apply for redundancy first - even if you’re not owed any money. Employees at the same business can have different notice periods. Once you have the LN reference number, claim online for loss of notice . Money you get (or could have got) by claiming benefits will be deducted from your payment. Help completing the online forms Contact the Redundancy Payments Service if you have queries about completing the online forms. You’ll need your case reference number or National Insurance number. Redundancy Payments Service redundancypaymentsonline@insolvency.gov.uk Telephone: 0330 331 0020 Monday to Thursday, 9am to 5pm Friday, 9am to 3pm Find out about call charges

It usually takes up to 6 weeks to get your payment but can take longer. Your information will be checked against the employer’s records, for example how much holiday you had accrued. You’ll only get a payment if the records show you’re owed money. Any benefits you’re 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’ll explain why your claim was rejected. You can make a claim to the employment tribunal if you disagree with the decision. You’ll be claiming against the Secretary of State for Business and Trade and your former employer (‘the respondents’). Help and advice Contact the Redundancy Payments Service if you need help. You’ll need your case reference number or National Insurance number. Redundancy Payments Service redundancypaymentsonline@insolvency.gov.uk Telephone: 0330 331 0020 Monday to Thursday, 9am to 5pm Friday, 9am to 3pm Find out about call charges Help finding a new job Contact your local Jobcentre Plus and ask for their Rapid Response Service for help finding a new job. You’ll be able to use the service for up to 13 weeks after you’re 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 .

Your rights if your employer is insolvent

Overview

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 (‘statutory notice pay’)

You may be eligible for unemployment benefits if you lose your job. If you do not apply for benefits after you lose your job, you might get less money in your statutory notice pay payment.

View a printable version of the whole guide

Your rights if your employer is insolvent

Overview

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Your rights if your employer is insolvent

Overview

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