Insolvency occurs when an employer is declared bankrupt. In such a case you will normally be made redundant. If your employer is insolvent there may not be enough funds available to make redundancy payments. However, you and your fellow ex-employees will become “preferred creditors”.
If your employer is insolvent you can claim payments from the National Insurance fund up to a set maximum to cover your redundancy payment, your unpaid wages, accrued holiday pay and notice pay etc.
Claims must be made to the Redundancy Payments Office. You can find out more on the BIS website, or the Insolvency Service website.
