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Insolvency: Redundancy Pay

Asked by Lisa SmartLiberal DemocratDepartment for Business and TradeTabled Answered 4 September 2025UIN 71912

The question

To ask the Secretary of State for Business and Trade, if he will take steps to amend the six-month limitation period for claiming payments from the National Insurance Fund in order that it begins from the date a company is confirmed as insolvent, rather than the date of dismissal, in cases where an employee is unable to submit a timely claim due to delays in (a) insolvency confirmation and (b) receiving the appropriate reference number.

Answered by Justin Madders

The legal requirement to claim payment for redundancy in writing from the employer within six months of dismissal only applies to the redundancy element of the monies claimed from the National Insurance Fund. It does not apply to elements such as unpaid wages, holiday or notice pay.

Applications can be submitted after 6 months if the claimant can provide evidence, such as any correspondence sent to the employer or relevant officer holder seeking payment. ACAS can provide advice in situations such as this.

There are no plans to amend the 6-month time period.

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