This is a really stressful situation to be in – we’re glad you’re reaching out to find out what support you could get. What you’re entitled to will depend on your circumstances at work and your employer’s situation – here’s what you need to know. 

First, find out your employment status, as this determines your rights at work. Most people are either an employee, worker or self-employed. Employees benefit from all statutory employment rights, whilst workers have fewer rights, and self-employed people usually only have the rights stated in their contract. Normally, you’ll have worker status if you do agency work or you’re on a ‘zero hours’ contract, where you’re not guaranteed any work. 

You can usually check your status in your contract or by asking your employer – however it ultimately depends on what actually happens when you’re at work. If you think your employer hasn’t identified your status correctly, contact us using the details below to make sure you’re not missing out on support you’re eligible for. You can also get free advice from employment specialists ACAS. 

Next, it’s a good idea to check if your employer has followed the correct redundancy process using our online advice. If they haven’t, you might be able to challenge them. 

Redundancy pay 

In most cases, you’ll be entitled to statutory redundancy pay if you’re an employee and you have: 

• worked continuously for your employer for two years, and 

• lost your job due to a genuine need to make redundancies 

It’s worth noting you can lose your right to this pay for reasons like turning down a suitable alterative job offer from your employer.  

If you’re eligible, the amount you’ll get depends on factors including your age and whether your weekly pay varies. Some employers may offer ‘contractual’ redundancy pay – an additional amount on top of the minimum payment required by law. 

Statutory notice pay 

In addition, if you’ve worked for your employer for more than a month, you might be entitled to statutory notice pay. This is basic pay covering the time you would have worked out your notice, paid after your notice period would have ended. 

Unpaid wages or holiday pay 

Depending on your circumstances, you might be able to claim up to 8 week’s unpaid wages, as well as any holiday pay you’re owed from the 12 months before your employer went out of business. Just be aware you could also owe money to your employer depending on how much of your holiday entitlement you’ve used. Unpaid wages should include any statutory payments owed, like sick pay and maternity pay. Bear in mind there’s a maximum amount you can claim, and you’ll still pay income tax and national insurance on this income as normal. 

Time off to help you find new work 

You might also be entitled to reasonable time off to look for a new job or complete training to help you find work, with some funded training options available. Working out what you’re entitled to can be really tricky, especially if you’re not classified as an employee, you do temp work or you’re on a zero hours contract. That’s why it’s always a good idea to contact us or ACAS for guidance. 

Next, how to access anything you’re owed when your employer’s gone out of business depends on their financial circumstances. If they’re going through a legal process called insolvency because they can’t pay their debts, their ‘insolvency practitioner’ should contact you to tell you how to apply to the government’s ‘Redundancy Payments Service’ to claim what you’re owed. You’ll usually get the money within 6 weeks of applying. 

If your employer owes you money that you can’t get from the Redundancy Payments Service, the insolvency practitioner should help you register as a creditor. This means you might get some more money, depending on if there’s any left once your employer is fully shut down and has paid any higher priority creditors. 

You still have options if your employer insolvent. Contact us for advice about possible solutions, like taking them to the employment tribunal or applying for them to become insolvent. We can also support you if your employer’s insolvency practitioner doesn’t believe you were employed, or that you were made redundant. Staying in contact with your former colleagues and Trade Union representative if you have one can be a good idea too, to share information about the situation. 

Finally, don’t forget you might be eligible to claim benefits to help with living costs while you look for your next job.  

We’re here to support you while you’re in this difficult situation. Contact us by telephone or webchat, email or face to face for more advice on this issue.