Your Redundancy & Insolvency FAQs 

If your employer has entered liquidation, administration, or another formal insolvency process, they may no longer have the funds to pay their staff. 

In this case, you may be eligible to claim certain payments from the Insolvency Service through its Redundancy Payments Service (RPS), a government-backed scheme designed to protect employees when their employer can no longer pay them. 

You may be able to claim for: 

• Redundancy pay (if you were employed for at least two years).
• Unpaid wages (including overtime, bonuses, or commission).
• Holiday pay (for any annual leave owed but not paid).
• Statutory notice pay (if you worked for your employer for at least one month).

Payment amounts are capped at government-set limits: What you can get if your employer is insolvent.

You can only apply after the official date of insolvency. This date will be confirmed by the Insolvency Practitioner managing the case. 

Applying before that date will cause an error when you enter your claim number. 

Your CN (case reference) number is issued by the Insolvency Practitioner once the company has formally entered insolvency. 

You’ll need this reference to submit your claim online. 

You’ll need to complete two online forms:  

Redundancy and money owed – for redundancy pay, unpaid wages, overtime, and holiday pay. Apply online.

Loss of notice pay – for your statutory notice pay, once your notice period has expired. Apply online. 

Complete the first form using the CN reference number provided by the Insolvency Practitioner before the second. Once processed, the Insolvency Service will issue an LN reference number which you will use for your loss of notice claim. 

• Most payments are made within six weeks of receiving a complete claim. 

• You might receive multiple payments as each claim type is processed. 

• The Insolvency Service will contact you if further information is needed. 

To help process claims quickly, it is recommended that you wait at least six weeks before checking on progress. 

The Redundancy Payments Service can only pay up to statutory limits. 

If you’re owed more than these statutory limits, any excess sums owed will be logged as a claim in the insolvency process and further payments may be made dependent on recoveries made from the estate. 

If your pay changed week to week, your claim will be based on your average weekly pay: 

• Last 12 weeks for wages and notice pay.
• Last 52 weeks for holiday pay. 

Click here to calculate your average weekly pay here.

Have these ready before you start: 

• National Insurance number
• Bank account details
• Employment start and end dates
• Redundancy date and last working day
• Gross weekly pay
• Holiday entitlement and days taken
• Details of any unpaid wages or commission
• Email address for correspondence

Some directors may also qualify for redundancy pay if they were employees. 

Check your eligibility here: Redundancy pay for company directors

Yes. You should check whether you’re eligible for Universal Credit or New Style Jobseeker’s Allowance: 

• Understanding Universal Credit
• Benefit calculators 

Keep evidence of your application as the RPS may need it when calculating your loss of notice payment. 

If your employer didn’t properly consult employees before redundancies, you may be entitled to a Protective Award through an Employment Tribunal. 

In order to be entitled to this claim, the following criteria must be met:

1. You were an employee of the company (i.e. you were on the company payroll, received wage slips and paid PAYE/NIC); 
2. You were one of 20 or more employees who worked at one establishment (i.e. the same office/ trading address);
3. Less than 30 days consultation was given (in this case, you were not given any notice of your redundancy); 

• Make an Employment Tribunal claim
• Explaining your Protective Award 

The Redundancy Payments Service receives some personal information from the Insolvency Practitioner to process your claim. 

Read more: Insolvency Service Personal Information Charter 

If Parker Andrews Limited is managing your employer’s insolvency, contact our team directly for case-specific questions. 

For general information about redundancy payments, visit: Redundancy Payments: Insolvency Service 

If you’ve lost your job because your employer became insolvent, you still have legal rights. 
The Redundancy Payments Service exists to ensure employees receive statutory entitlements promptly and Parker Andrews is here to help guide you through the process.