Thank you very much for clarifying. If the employer is facing insolvency, most options will be taken put of your hands as they will enter the formal insolvency process prescribed by law.
If an employer becomes insolvent, its employees could be immediately affected as they not only lose their jobs, but may also not be paid what they are due for their wages, holidays, redundancy pay, etc.
Whilst an employee can usually start legal proceedings against the employer to try and recover what they are owed, often such action would be pointless as they are unlikely to have the money or assets to satisfy such a claim, and a claim may also be blocked by the courts whilst the insolvency process is ongoing. You can try to find out if the company is officially insolvent by looking up their information on Companies House:
The first step is to contact the company’s insolvency practitioners (the administrators or liquidators) or the Official Receiver to check what is happening with the insolvency and what your rights are. They will know about the financial situation of the company in detail and direct you towards your next steps. Make sure you ask about the CN reference number, if applicable, which will be used to claim from the Government, in the event the company cannot pay.
In that case the Government can cover the following payments:
- Up to 8 weeks' owed pay (capped at a set amount) minus basic rate tax and NI contributions.
- Up to 6 weeks' holiday pay (capped at a set amount) which accrued in the 12-month period ending on the date of the insolvency, minus basic rate tax and NI contributions.
- Statutory notice pay (capped at a set amount) minus basic rate tax.
- Statutory redundancy payment, minus any amount already paid by the employer
The claims process can be initiated online, via the following link:
If you need further assistance or help with the above form, please contact the Redundancy Payments Service via***@******.***