Can I claim if my employer has gone bust or into administration?

Yes. If your employer becomes insolvent, you don’t lose your employment rights. The government’s National Insurance Fund pays out statutory entitlements, and your tribunal claim can still proceed.

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What if the company has already been dissolved?

You can still bring a tribunal claim. The Secretary of State becomes the respondent (the NIF pays out via RP claim). File an ET1 naming the company and the Secretary of State. The tribunal will handle the procedural aspects. You can also claim redundancy/unpaid wages via the NIF separately on GOV.UK.

Does the 3-month time limit still apply?

Yes. You have 3 months from the date of dismissal (or the last act of discrimination/breach) to notify ACAS for early conciliation. Insolvency doesn't stop the clock. Start the process immediately — don't assume because the company is in trouble you can wait.

Can I claim redundancy pay from the NIF?

Yes, if you were made redundant in connection with insolvency. Statutory redundancy pay is covered by the NIF (up to the statutory cap: £22,530 or 1.5 weeks per year of service, capped at 20 years). Apply via GOV.UK's insolvency claims form (RP1/RP2).

What is the difference between administration and liquidation?

Administration: a temporary process where an administrator tries to rescue the company, realise assets, or achieve a better outcome than liquidation. Liquidation: the company is wound up, assets are sold, and creditors are paid in order. Both are insolvency — both trigger NIF and tribunal rights.

If I was TUPE transferred before insolvency, what are my rights?

TUPE transfers your employment to the new owner. You're no longer employed by the insolvent company — you're employed by the transferee. However, if the transferee then became insolvent, the same rules apply to them. If there's a gap or the transferee disputes liability, get advice quickly.

Will I get compensation for discrimination from the NIF (no)?

No. The NIF only covers: statutory redundancy pay, unpaid wages (basic pay, not bonuses), unpaid notice pay (statutory minimum), and statutory holiday pay. Discrimination compensation, injury to feelings, and compensatory awards for unfair dismissal are not covered by the NIF and become unsecured creditor claims (you're unlikely to recover anything). This is why discrimination and whistleblowing claims matter — uncapped compensation — but only the statutory elements are guaranteed via NIF.

Can I claim if my employer has gone bust or into administration?

Insolvency doesn’t erase employment rights. You have two parallel paths: a statutory claim to the government, and a tribunal claim against the insolvent company (or Secretary of State).

Last updated: April 2026 · Content reviewed against current UK employment law

What happens when an employer becomes insolvent

When a company enters insolvency (liquidation, administration, or receivership), employment rights survive. Here's the legal structure:

Insolvency practitioner appointed

A licensed insolvency practitioner (liquidator, administrator, or receiver) takes control of the company's assets and affairs. They become a key player in employment matters.

Employment may or may not continue

Sometimes the business is sold as a going concern and employment continues. Other times, the company trades briefly in insolvency then shuts down. Either way, your rights apply.

Insolvency practitioner is respondent to tribunal

In a tribunal claim, you'd name the company and the insolvency practitioner (or Secretary of State) as respondent. They represent the company's interests during the claim.

Tribunal award becomes a claim on the estate

If you win, the tribunal award becomes a creditor claim against the insolvent company's assets. Statutory amounts are paid by the NIF. Unsecured claims (like the compensatory award in unfair dismissal above statutory) are paid after secured creditors — often £0.

The National Insurance Fund (NIF) — guaranteed payment

The government guarantees certain payments via the National Insurance Fund. This is separate from a tribunal claim — apply directly on GOV.UK:

What the NIF covers (apply at gov.uk/your-rights-if-your-employer-is-insolvent):

NIF claims are typically processed faster than tribunal claims. Apply immediately to recover what you're entitled to.

Employment tribunal claim — parallel to NIF claim

You can bring a tribunal claim against the insolvent company at the same time as applying for NIF payment:

Who is the respondent?

Name the company and the insolvency practitioner (or Secretary of State if the company is dissolved). The tribunal will notify the insolvency practitioner.

Time limits still apply

3 months from dismissal (or act of discrimination) to notify ACAS. Insolvency doesn't stop the clock.

What you can claim at tribunal

Unfair dismissal, discrimination, wrongful dismissal, whistleblowing — same as if the company were solvent. The insolvency is a background fact, not a bar to the claim.

If you win, statutory amounts (basic award in unfair dismissal, notice pay, etc) are paid by the NIF. Compensatory awards and discretionary elements depend on the estate's remaining assets.

What you can and can't recover from NIF vs. tribunal award

Different routes guarantee different amounts:

Discrimination claims aren't covered by NIF. If you have a discrimination case, the NIF guarantees statutory amounts only — you'd need to recover the compensatory award from the estate, which usually has nothing left.

Practical steps — what to do immediately

If your employer is insolvent or heading that way, act fast:

Notify ACAS for early conciliation — now

Don't wait for the company to be formally insolvent. If you think you have a claim, contact ACAS immediately. The 3-month clock is running.

File an NIF claim on GOV.UK

Apply for statutory redundancy, unpaid wages, etc. at gov.uk/your-rights-if-your-employer-is-insolvent. This is separate from tribunal and can be done quickly.

Get legal advice quickly

Insolvency claims are complex. A solicitor can advise on what to claim, how to name the respondent (company vs. Secretary of State), and what route is best for your case.

File ET1 within 3 months

After ACAS early conciliation (or conciliation period expires), file your ET1. Name the company and insolvency practitioner. Time limits don't pause.

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