This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how redundancy payments are claimed in insolvency in England and Wales. This detailed guide explains eligibility, what statutory payments you can claim from the National Insurance Fund, step‑by‑step instructions for online applications, time limits, and practical tips for securing redundancy and related entitlements after your employer becomes insolvent.
Redundancy Payments When an Employer Is Insolvent
When a company in England and Wales becomes insolvent - meaning it can no longer pay its debts - employees may be made redundant and owed statutory payments they are unable to receive directly from their employer. To protect workers in this situation, government legislation allows eligible employees to claim statutory redundancy pay and other related sums from the National Insurance Fund (NIF), administered by the Redundancy Payments Service (RPS) on behalf of the Insolvency Service. This article explains how redundancy payments are claimed in insolvency, the steps involved, time limits, what sums may be payable, and important practical considerations.
Who Can Claim Redundancy Payments in Insolvency
If you are made redundant and your employer has entered formal insolvency (for example, administration or liquidation), you can usually apply to the Redundancy Payments Service for your statutory redundancy payment and related entitlements. To qualify:
- You must have been an employee (not a contractor).
- Your employment must have ended because the business has become insolvent.
- You must have a case reference number (known as a CN number) provided by the insolvency practitioner or official receiver handling the insolvency.
- You must apply within the statutory time limit (generally six months from your redundancy date).
Importantly, you cannot claim redundancy payments from the NIF until you receive your CN reference number from the appointed insolvency professional. Without this number, the online application cannot proceed.
What Payments You Can Claim
When claiming redundancy payments in insolvency you can ask for a combination of statutory sums. These include:
1. Statutory Redundancy Pay
This is the basic entitlement for employees who have been made redundant. To qualify normally you must have two years or more continuous service with the insolvent employer. The amount is worked out using your age, length of service, and weekly pay, subject to statutory caps (for example, a weekly pay cap of £719 if the insolvency happened on or after 6 April 2025). You can receive up to 20 years' service worth of entitlement.
2. Money Owed by Employer (Arrears of Pay)
You can claim up to eight weeks' unpaid wages and other contractual amounts such as overtime or bonuses owed for work already performed before insolvency. These are also subject to weekly pay caps.
3. Holiday Pay Owed
You may be entitled to payment for accrued but untaken holiday and for holiday taken but not paid for, capped at six weeks' holiday pay within the 12 months before insolvency.
4. Loss of Notice Pay (Statutory Notice)
If you were not given proper notice of redundancy or you worked part of your notice period without pay, you can claim statutory notice pay - usually calculated based on a week's pay for each year employed, up to a 12‑week maximum.
5. Protective Awards
If your employer failed to consult properly on proposed redundancies (for example where there were collective redundancies), you may be entitled to a protective award, payable up to eight weeks.
Note that tax and National Insurance contributions are deducted from most elements (but not from statutory redundancy pay itself).
The Claims Process: Step by Step
1. Get Your Case Reference Number
After your employer enters insolvency, the insolvency practitioner or official receiver will issue a case reference (CN) number to you. You cannot start your claim without this number.
2. Complete the Online Application (RP1 Form)
Using the CN number, you complete the primary online application (often called the RP1 form) for redundancy pay, arrears of pay, and holiday pay. This form is available on the government website.
If you want to claim statutory notice pay, you will usually apply separately once a further reference number (often termed “LN”) is provided after your notice period would have ended.
3. Wait for Payment and Letters
Each element of your claim may be paid separately, and you will receive letters detailing each payment and any deductions made.
4. Provide Additional Information if Requested
The Redundancy Payments Service may ask you for further details or clarification if information provided by the insolvency practitioner is incomplete.
Time Limits and Deadlines
You must apply within six months of your employment ending to claim statutory redundancy pay and associated sums from the National Insurance Fund. For other elements such as holiday pay and loss of notice pay, applications are guided by statutory timelines and depend on when you receive the necessary reference numbers.
If your claim is rejected, you may have the right to appeal to an Employment Tribunal. For redundancy pay, the time limit is usually six months from dismissal; for other elements, it is typically three months from the date of the rejection letter. In most cases you must first notify Acas of your intention to pursue a tribunal claim.
Practical Considerations and Common Questions
What If the Insolvency Practitioner Does Not Issue a CN Number?
If you have not received a case reference number after being made redundant, contact the insolvency practitioner handling your employer's insolvency. It is their role to ensure employees receive the necessary information to claim.
What If You Disagree With Your Payment Amount?
If you think your calculation is wrong - for example because employment details are incorrect - you can contact the Redundancy Payments Service with evidence, such as your employment contract or wage slips, to request a reassessment.
Can Directors Claim Redundancy Payments?
If a director was also an employee, they may be able to claim redundancy and associated payments, provided they meet the basic eligibility criteria.
Key Takeaways
When an employer in England and Wales becomes insolvent and cannot pay statutory entitlements, employees can claim redundancy pay, arrears of pay, holiday pay, loss of notice pay and, in some cases, protective awards from the National Insurance Fund via the Redundancy Payments Service. The process involves obtaining a case reference number from the insolvency practitioner, completing the relevant application forms online, and adhering to statutory time limits. Payments are subject to statutory caps and may be taxed or have National Insurance deducted. If a claim is rejected, employees may have recourse to an Employment Tribunal. Understanding these steps ensures that eligible employees secure the entitlements owed to them following a company's insolvency.
