If your employer goes into administration and cannot pay your wages, what can you do?

If your employer goes into administration and no one steps in to buy the business from the administrator, you will normally be made redundant. Your employer would usually be insolvent at that point, meaning that there may not be any funds available to make redundancy payments.  In this situation you can claim payments from the National Insurance Fund within 6 months of your dismissal.  The National Insurance Fund is operated and managed by the Redundancy Payments Service, to whom employees make their application for repayment.  

These are the types of payments that can be claimed, with the payment cap currently standing at £538 per week:

  • Up to eight weeks’ wages
  • Arrears of holiday pay for a period of up to six weeks
  • Payment for any statutory notice period that was worked but not paid (up to 12 weeks maximum)
  • Unpaid pension contributions
  • The basic award for unfair dismissal

You can find out more about how to make a claim on the GOV.UK website.