Insolvency and your rights if your employer is insolvent

If your employer is insolvent, they cannot pay their creditors and have to make special arrangements to meet the debts.

Insolvency for an individual means bankruptcy or sequestration and for companies and limited liability partnerships means administration, liquidation or receivership.

If your employer is declared legally insolvent you will be able to claim your redundancy payment from Redundancy Payments Office (RPO). The insolvency practitioner will send you the RP1 form necessary for making a claim to any money you are owed. If you do not receive the form you should write to the insolvency practitioner who will tell you how to claim your payment from the RPO and HM Revenue & Customs (HMRC).

The Insolvency Services RPO is responsible for paying:

• Redundancy pay
* Wages (including protective awards)
* Holiday Pay
* Notice pay
* Basic award for unfair dismissal
* Unpaid pension contributions

HM Revenue and Customs is responsible for continuing to pay the following:

• Statutory sick pay
* Maternity pay
* Paternity pay
* Adoption pay

The necessary claims forms for HMRC claims are available from any Jobcentre.