where a company becomes insolvent and is place in

[keithwin]

where a company becomes insolvent and is place in administration where does an employee stand in respect to receiving ilo notice salary payments?

[MelanieGiles]

Hi there and welcome to the forum

If the employee has been made redundant, they can claim on a Government run National Insurance Fund for any claims they have against their insolvent employer - currently to a limit of £330 per week I believe and based upon one week's money for each year of service up to a maximum of 12 weeks.

The employee has a duty to mitigate their loss, and so if new employment is found within that period this will be deducted from any claim.

[ianmillington]

Much simplified overview of a complex area.....

When the employee is made redundant the Secretary of State picks up the bill and then claims as a creditor. However, there are limits imposed by the Employment Righta Act 1996 (for example the payments are to be a maximum of £330 per week and a maximum of 12 weeks). Also you get 1 week notice for every year you worked for the company (Maximum 12).

If your entitlement exceeds those that the Secretary of State will pay, you can claim for the balance although the Secretary of State is entitled to get paid in full before you get anything.

Ian