The National Insurance Fund - How to recover money owed when your employer is insolvent

In addition to a claim against their insolvent employer, ex-employees may consider a claim to the National Insurance Fund to recover certain sums of money owed. In summary:

Salary arrears
  • Maximum of 8 weekspay capped at 475 per week
  • Maximum of 6 weekspay capped at 475 per week
Statutory Notice Pay
  • A weeks' pay for every year of service up to a maximum of 12 weekspay capped at 475 per week
  • Less any mitigation (e.g. money from new job or benefits)
Statutory Redundancy Payment
Basic Award
  • This must be established by the Employment Tribunal
Pension Contribution
  • Employer contributions can be claimed by an administrator or trustee of a pension scheme to a limited extent.
  • Employee contributions if these have been deducted from pay in the 12 months prior to the insolvency.
Apprentice fee
  • A reasonable sum for the whole or part of any fee/premium paid for an apprentice
HMRC is liable for any unpaid statutory sick pay and statutory maternity/ paternity/ adoption pay.

If you like more information on any of the issues above, give one of our employment experts a call on 0113 201 4900 for a free, initial discussion.

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