Q&As

Can an employee submit a claim to the Redundancy Payments Office in respect of protected payments where a writ of control has been returned unexecuted (which is an insolvency event under section 123 of the Insolvency Act 1986) or do they have to be in a formal insolvency procedure first?

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Published on: 18 February 2019
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An employee may apply to the Department for Business, Energy and Industrial Strategy to pay the statutory redundancy payment out of the state guarantee fund (the National Insurance Fund) if they are unable to obtain the payment from their employer because either the employer refuses to pay or is insolvent. For further information, see Practice Note: Redundancy—insolvency and the state guarantee fund.

Refusal to pay

If the employer is solvent but refuses to pay, the employee will need to show that they have taken 'all reasonable steps' to obtain payment under section 166(1)(a) of the Employment Rights Act 1996 (ERA 1996). For further information, see Practice Note: Redundancy—insolvency and the state guarantee fund—Employer's refusal.

Employer insolvency

Commentary: Insolvent employer: Harvey on Industrial Relations and Employment Law [647]

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Jurisdiction(s):
United Kingdom
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Key definition:
Redundancy definition
What does Redundancy mean?

When an employee's role has diminished or disappeared such that it is no longer required by the employer.

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