When your employer becomes insolvent
Employee steps when a UK company enters administration or liquidation — redundancy, pay claims and official guidance.
Insolvency changes who pays your wages and how you claim redundancy. See GOV.UK and the Redundancy Payments Service — this page outlines actions without quoting payment amounts.
Early warning signs
Late pay, pension contribution gaps or news of administration.
List amounts owed: pay, holiday, notice.
Secure contract, payslips and redundancy letter if issued.
Administration and liquidation
An insolvency practitioner takes control; employees become creditors for certain debts.
The National Insurance Fund via Redundancy Payments Service may pay statutory redundancy, notice pay and wage arrears within legal limits on GOV.UK.
Submit claims using official forms and deadlines.
Redundancy and benefits
Insolvency often triggers redundancies.
Claim Universal Credit or New Style JSA promptly; report any RPS payments received.
Keep practitioner letters and claim references.
Unions and employee representatives
Recognised unions advise on collective processes.
Share information carefully; rely on practitioner notices for legal steps.
Do not sign broad waivers without advice.
Remaining debts
Amounts above statutory caps may rank as unsecured creditor claims — recovery often partial.
Employment lawyers help with claim forms and deadlines.
Document everything for HMRC and DWP.