Insolvency

If your employer becomes bankrupt, or enters into administration, liquidation, receivership or a voluntary arrangement with its creditors or otherwise becomes insolvent it is likely that you will be owed money by them.

Where an insolvent employer is unable to pay your wages you may be entitled to assistance from a government insolvency scheme.

The scheme pays up to 8 weeks wages (including statutory sick pay, maternity pay, paternity pay and adoption pay), up to 6 weeks holiday pay and so long as you have worked for your employer for more than one month notice pay at the rate of one week for each complete year of employment (subject to maximum of 12 weeks and to deductions from other income you receive during the 'notice' period).

In the event that you have been unfairly dismissed the scheme will also pay the basic award for unfair dismissal.

Payments under the scheme are subject to a cap of £350 per week.

If the scheme doesn't pay you all that you are owed then you are entitled to join other creditors in making a claim against the assets of your employer. If these include outstanding wages they will count as a preferential debt to be paid in priority to your employers other debts.

If you have worked for your employer for more than two years and are made redundant you are entitled to a statutory redundancy payment so long as you have applied to an employment tribunal within six months of your employment ending.

If you are unsure of your entitlements our specialist advisers can help - call us now.