Status of employer
Unknown status of insolvency
Is my employer insolvent?
A closed business does not mean an insolvent business. You must identify insolvency status in order to make your redundancy claim. If you have yet to identify insolvency status you can use Companies House who hold trading details on its register of companies. Information on individuals who are declared bankrupt from the Insolvency Service
Trustee (in bankruptcy)
Supervisor (of a voluntary arrangement)
Receiver
Liquidator
Administrator
In most cases an individual will be appointed to deal with the insolvency and will be identified as an 'Insolvency Practitioner' or 'Official Receiver'. They will be responsible for the progress of the case and act in one of the following capacities:
Your employer will not be regarded as insolvent if they simply stop trading or they are removed from the register of companies (dissolved)
Bankruptcy
In the case that your employer is an individual, insolvency will be identified as either:
Voluntary arrangement with creditors
Receivership
Liquidation
Administration
In the case that your employer is a company or limited liability partnership insolvency will be identified using one
of the following terms:
Not legally insolvent
Proceedings must be taken through the Office of Industrial Tribunal and Fair Employment Tribunal, this requires use of the ET1 form which can be accessed via the Legal Docs service (Form ET1: Make a claim to an employment tribunal)
You can apply as soon as you have been made redundant
Must apply within 6 months of being dismissed
Redundancy payments are capped at £544 a week (£538 if you were made redundant before April 6th 2021
You are only entitled to money included in your employment contract, other payments such as holiday pay, notice pay or arrears of pay cannot be made
If you turned 22 or 41 while working for your employer the higher rates apply for the full years you were over 22 or 41
Age 41 and older - 1.5 weeks pay
Age 22 to 40 - 1 weeks
Up to age 22 - half a weeks pay
Redundancy pay is based on your earnings before tax (gross pay). For each full year you have worked for your employer you can claim:
Eligibility criteria for redundancy payment from an employer
that is not insolvent
You are a UK or EEA national (or a foreign national with permission to work in the UK)
You were continuously employed by the business for 2 years or more
Legally insolvent
Add the department.
Following an unsuccessful claim
For help and assistance contact the Redundancy Payments Service. You will need to provide your case reference number or National Insurance Number
You can make a claim to the Employment Tribunal if you disagree with the decision. You'll be claiming against the Secretary of State of Business and Energy and Industrial Strategy and your former employer
Contact the Redundancy Payments Service who will provide details as to why the claim was rejected
Following a successful claim
Benefits you are entitled to claim will be deducted from your statutory notice payment regardless of whether you claim them
The information you provide will be checked against the employer's records. Payment will only be made if the employer's records reflect the information you provide
If your claim is successful you should receive payment within 6 weeks however it can take longer
Making a claim
The insolvency practitioner will provide you with the RP1 form to complete and return to them or they will request you to send it to the Redundancy Payments service to be done as soon as possible
The insolvency practitioner (alternatively 'official receiver') will give you a 'CN' (case reference) number, you cannot claim without the CN number
You are able to apply as soon as you have been made redundant
Must apply for redundancy pay within 6 months of being dismissed
Debt must be registered with the employer's insolvency practitioner
Items that eligible claimants are entitled to claim
Unpaid pension contributions
Protective award
Basic award for unfair dismissal
Compensatory notice pay (1 week after one calendar months service rising to 1 week per year of service up to a maximum of 12 weeks (new earnings will be taken into account))
Holiday pay (maximum of 6 weeks)
Wages (maximum of 8 weeks)
Redundancy
Eligibility criteria for redundancy payment from an insolvent employer
Type in the name of the head of the department.
You are a UK or EEA national (or a foreign national
with permission to work in the UK)
You were continuously employed by the insolvent
business for 2 years or more
You were an employee
Add the name of subordinates.
