How much of an insolvent employer's debt will the Secretary of State repay to employees?
An employee who is owed money by an insolvent employer can make a claim to the Secretary of State (in practice the Redundancy Payments Service) for payment of all or part of the debt out of the National Insurance Fund.
The Secretary of State's liability extends to:
- unpaid wages to a limit of £525 per week for a maximum of eight weeks;
- up to six weeks' holiday pay subject to a limit of £525 per week;
- any basic award of compensation for unfair dismissal;
- any protective award ordered by an employment tribunal;
- any statutory payments in respect of time off work or suspension on medical or maternity grounds;
- any statutory redundancy payment (subject to certain conditions);
- any reasonable sum to reimburse a fee paid by an apprentice or articled clerk; and
- money in lieu of statutory notice up to a maximum of £525 per week.