Bankrupt Employers and Redundancy Compensation
What if my employer goes bankrupt?
If your employer goes bankrupt then they may not be able to pay you statutory redundancy pay and some of your wages may also be outstanding. If you are made redundant, then you can claim this money back through National Insurance contributions from your Redundancy Payments Office. They will send you forms to fill in. You may not get back everything you claim for but you will get back:
- Up to 8 weeks’ pay
- Up to 6 weeks’ holiday
- Statutory notice pay
- Basic award for unfair dismissal
Once you have been made redundant you will receive a redundancy package if you have been with your employer for two years or over. Your employer should take you through a consultation process to ensure that the right people are being made redundant. Your redundancy package is determined by your age and length of service:
- Aged 41 or over – One and a half weeks’ pay for every full year of service
- Aged 22-40 – One week’s pay for every full year of service
- Aged 18-22 – Half a week’s pay for each full year of service.
TCHC supports businesses and individuals in realising and reaching their potential. We have a wealth of experience in helping the unemployed and people affected by redundancy find employment or start a business.
Visit our redundancy web page for more information on our Skills Support for Redundancy programme.
Get help with your redundancy issues and find out how you can seek legal advice in our next installment of our redundancy survival guide.