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

If your employer goes bust and no other employer steps in to buy the business from the insolvency administrator, you will normally be made redundant. If your employer is insolvent there may not be enough funds available to make redundancy payments. However, 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.

Claims must be made to the Insolvency Service. You can find out more about how to make a claim on the GOV.UK website.

There is also a government-run Redundancy Payments Helpline you can call on 0330 331 0020 (lines are open 9am to 5pm, Monday to Friday).

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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