Book a Virtual Meeting - Free Confidential Advice
If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448..

Employee Guide To Insolvency

Employee Guide To Insolvency. Written by John A Waller. Consultant. Reviewed July 19th, 2024.

Employees have the same rights as every other creditor. Understanding employee rights when a company is insolvent is important, although in most cases, companies do not have sufficient funds to pay employees in full. The Redundancy Payments Office (RPO) can offer significant support. The RPO allows employees to claim outstanding wages/salaries, holiday pay, and specific redundancy claims. Any agreed-upon claims usually take eight weeks to settle, but in times of crisis, they may take longer.

As an employee (including directors), you’ll get everything your employer owes (up to the amount shown below). You can claim for:

  • Statutory notice pay;
  • Redundancy;
  • Up to 8 weeks’ wages;
  • Up to 6 weeks’ holiday pay;
  • Unpaid pension contributions – speak to the liquidator to claim this for you;
  • Basic award for unfair dismissal.

Redundancy payments are capped at £700 a week (£643 if you were made redundant before 6 April 2024). You can get a payment for a maximum of 20 years.

Employee Guide To Insolvency – How do I claim outstanding wages/salary?

To claim redundancy, contact the liquidator first (if they have not already written to you). They will provide you with a case reference number once you have received the case reference number. It would help if you visited https://www.gov.uk/claim-redundancy. You can use the online portal to process your claim. The RPO and Liquidator will deal with the rest.

What is TUPE? How will it affect me?

TUPE Regulations protect and preserve employees’ rights when a business or undertaking, or part of one, is transferred to a new employer. When part of a company is subject to a sale to another entity, Legal rights as an employee may move with the transaction. The liquidator will confirm this point when transferred under an insolvency process.

TUPE can also stop an employee from claiming redundancy from the Redundancy Payments Office or Liquidator if TUPE has taken effect.

For further help, click on Meet THE TEAM at HBG Advisory. They are approachable and want to help. Their number is 0800 612 5448.

Get Help Today


Support Is Just A Call Away
Business recovery for distressed directors and limited companies. Free advice from approachable team of advisors.Tel: 0800 612 5448

ACCA assisting in liabilities of directors
IPA Logo
TMA Logo
R3 Logo
Act Fast Once You Receive A CCJ.
Liquidation Specialists.
Experts in dealing with Company Debt

    Get Help Today

    1. Name: (*)

    2. Company Name:

    3. Telephone: (*)

    4. Email:

    5. Message:

    *Required Fields

    CALL TODAY FOR
    EXPERT CONFIDENTIAL ADVICE

    0330 056 3120

    Further Reading