I’ve been made redundant because my employer is bankrupt. Will I still get paid?

If your employer goes bankrupt and you are made redundant, it may not have enough funds to pay your normal redundancy pay. Instead, you can claim money from the government’s National Insurance Fund. The government may also be able to give you more money towards other amounts owed to you, such as unpaid wages, notice pay and holiday pay.

There is an upper limit on what you can claim, so you may not receive all that you would have done, and you should try to claim any balance from the insolvency practitioner or receiver who is handling your employer's insolvency.

If you were being paid statutory employment benefits such as Statutory Sick Pay or Statutory Maternity Pay, you can apply to HMRC for payment. HMRC runs a helpline: 0191 225 5221.

There's more information about your rights if your employer is insolvent on the GOV.UK website, as well as the necessary forms for making a claim.

The government’s Redundancy Payments Helpline (tel: 0330 331 0020 – calls charged at local rates) can also help with current payment rate questions or send you further information.

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.

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