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🏚 Employer Insolvency

Employer Gone Bust? Getting Your Redundancy Pay and Money Owed in England, Wales and Scotland

What the Redundancy Payments Service pays when your employer is insolvent: redundancy pay, up to 8 weeks of wages, holiday pay and statutory notice pay, the weekly cap, and how to claim.

✅ Last verified: 24 September 2026 📚 Sources: listed at the end, each checked on the date shown 🇬🇧 England, Wales and Scotland

💬 Check your own situation

Describe what has happened. The checker answers only from this guide, plus what you tell it, and says so if something is not covered.

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Who this guide is for

Employees in England, Wales or Scotland whose employer is insolvent (for example in administration or liquidation) and who are owed redundancy pay, wages, holiday pay or notice pay.

What this guide does not cover

⚖ At a glance

  • If your employer is insolvent, the government's Redundancy Payments Service can pay some of what you are owed.
  • It can pay redundancy pay, up to 8 weeks of unpaid wages, up to 6 weeks of holiday pay and statutory notice pay (up to 12 weeks).
  • From 6 April 2026 each week is capped at £751. Lower caps apply to redundancies before that date.
  • You need a CN (case reference) number from the insolvency practitioner or official receiver. Apply for redundancy pay within 6 months of being dismissed.

The questions that decide the answer

  1. Is your employer formally insolvent? The scheme pays when an insolvency practitioner or the official receiver is dealing with the insolvency. If your employer is only struggling, or simply will not pay, this guide does not apply.
  2. Were you an employee? You must be an employee, and a UK or EEA national or a foreign national with permission to work in the UK. A contractor cannot apply and should register as a creditor instead.
  3. How long did you work there without a break? Redundancy pay needs 2 years or more of continuous employment with the insolvent business.
  4. When were you dismissed? The date decides the cap and your 6-month deadline.

What you can get

What you get depends on how long you were employed, what was in your employment contract, and your age. Payments are capped.

Redundancy pay: you are normally entitled if you were made redundant, were an employee and were continuously employed by the insolvent business for 2 years or more. You get half a week's pay for each full year you were under 22, one week's pay for each full year you were 22 to 40, and one and a half weeks' pay for each full year you were 41 or older. Only 20 years can count. For redundancies from 6 April 2026, a week's pay is capped at £751 and the most is £22,530.

Unpaid wages and other money in your contract (for example bonuses, overtime and commission): up to 8 weeks. It counts as a week even if you are only owed money for a few days. Capped at £751 a week.

Holiday pay: for holiday you did not take, or took but were not paid for, in the 12 months before your employer became insolvent. Up to 6 weeks, capped at £751 a week.

Statutory notice pay: if you did not work your notice, worked only some of it, or worked it unpaid. It is one week for every year you were employed, up to 12 weeks, capped at £751 a week. Money you get, or could have got, by claiming benefits is deducted from it.

You are only entitled to money that is in your employment contract.

Income tax and National Insurance are deducted from wages, holiday pay and notice pay. They are not deducted from redundancy pay. You might be able to claim a tax refund if too much was taken.

Pension contributions: contact the insolvency practitioner or official receiver if contributions to your pension are missing. A claim for unpaid pension contributions can only be made by the pension scheme trustees, not by you.

How to claim

You can apply as soon as you have been made redundant. The insolvency practitioner or official receiver gives you a CN (case reference) number. You cannot claim without it.

Apply online on GOV.UK for redundancy pay, unpaid wages and holiday pay. The application asks if you want to claim statutory notice pay. Saying yes does not mean you have applied.

For statutory notice pay you need an LN reference number. It is sent after your notice period would have ended, usually no more than 12 weeks after you are dismissed. You must apply for redundancy first, even if you are not owed any.

Deadlines you must meet

Where to go for help

Redundancy Payments Service: 0330 331 0020 (Monday to Thursday 9am to 5pm, Friday 9am to 3pm), for help with the online forms. Have your case reference number or National Insurance number ready.

Acas: 0300 123 1100 (Monday to Friday, 8am to 6pm), acas.org.uk. Free advice on redundancy pay.

Free advice is also available from Citizens Advice.

Citizens Advice (England): 0800 144 8848

Citizens Advice (Wales): 0800 702 2020

Citizens Advice Scotland: 0800 028 1456

Traps

📜 Sources (checked 24 September 2026)

  • GOV.UK: Your rights if your employer is insolvent (what you can get; apply for money you're owed - eligibility, CN and LN numbers, 6-month limit, benefits deducted from notice pay, Redundancy Payments Service contact).
  • GOV.UK guidance (Insolvency Service): Explaining your redundancy payments (tax and National Insurance on payments; pension shortfall claims by scheme trustees only).
  • Redundancy pay rules and cap reused from the employee rights guide (Acas; Employment Rights (Increase of Limits) Order 2026).
  • Helplines checked on each organisation's own website on 24 September 2026.
⚠ Important disclaimer: This guide covers getting paid when your employer is insolvent in England, Wales and Scotland as at 24 September 2026. General legal information only, not legal advice. ukworkrights.co.uk — Not a law firm.

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