If my employer goes bust and cannot pay my wages, is there anything I can do?

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”.

This means that 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 Department for Trade and Industry. You can find out more on the DTI website