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Wednesday, 3 October 2023

Insolvency payment claims

You might be entitled to claim certain payments from the National Insurance Fund if your employer is insolvent. In some cases, it might not be possible for you to claim all the money you are owed. Find out what arrangements there are to make sure you receive a minimum amount.

Making an insolvency payment claim

The insolvency practitioner will normally send you the necessary forms for claiming any money you are owed. If this does not happen, you should write to the insolvency practitioner setting out your claim. They should tell you how to claim payments from the Redundancy Payments Office and HM Revenue & Customs (HMRC).

If you do not know who your insolvency practitioner is, you can contact Companies House who should hold their details and give you further support.

Who will pay you?

There is no guarantee all debts and claims you make can be paid in full. There are special arrangements to make sure you receive a basic minimum of the debts owed from the National Insurance Fund.

The Insolvency Service's Redundancy Payments Offices are responsible for paying the following claims:

  • redundancy pay
  • wages (including protective awards)
  • holiday pay
  • notice pay
  • basic award for unfair dismissal
  • unpaid pension contributions

HMRC is responsible for continuing to pay the following payments you might be entitled to on or after the insolvency:

  • Statutory Sick Pay
  • Statutory Maternity Pay
  • Statutory Paternity Pay
  • Statutory Adoption Pay

What pay includes

Pay includes:

  • guarantee payments
  • statutory payments for time off work, or suspension for medical or maternity reasons
  • overtime and commission

However, not all commission or bonus pay is payable from the National Insurance Fund. Only commission or bonus pay based on the amount of work you have done in the weeks you claim from the Fund may be considered.

Working out payments

Holiday pay and wages are calculated up to the date of insolvency.

Redundancy and notice pay are worked out from either the date your employer became formally insolvent or when your employment ended - whichever is later.


If you and other employees have been paying into a pension scheme at work, the pension fund trustees can apply to the Secretary of State for some of your employer's unpaid contributions to be paid into the scheme.


If your employer is insolvent and makes you redundant, you may be able to claim Statutory Redundancy Pay.

To qualify for payment you must:

  • have been continuously employed by your employer for two or more years
  • have made a written application to your employer or applied to an Employment Tribunal for an award, within six months of your job ending

You can order a free copy of the RP1 Redundancy payments claim form from the Department for Business website or telephone 0845 015 0010 quoting URN 10/708.

What to do next

If you do not agree with the amount of payment made from the National Insurance Fund, you might be able to make a claim to an Employment Tribunal.

Where to get help

For general enquiries about insolvency, call the Insolvency Service or you can fill out an enquiry form on the Insolvency Service website.

For queries about redundancy payments from insolvent employers, call the Redundancy Payments Helpline.

If you live in Northern Ireland, the process that applies to you is different. Visit the nidirect website for help.

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