Check if you can apply for redundancy payments as a company director

Employees are legally entitled to certain payments when they are made redundant.

When an employer enters a formal insolvency process, these payments are made by the Insolvency Service, within certain statutory limits.

Only employees who are made redundant are entitled to payments from the Insolvency Service.

A director, who is an office holder, can also be an employee and be eligible for payment.

Directors applying to the Insolvency Service for monies owed will need to provide evidence to support their claim that they were an employee.

The Insolvency Service will have to consider whether there was a contract of employment in place at the time (which can be express or implied).

Additional information will be asked for based on your circumstances and may include:

Use our primary application to claim money if your employer owes you a redundancy payment or money like wages, holiday and commission. Your employer must be unable to pay you, for example because they’re insolvent.

You do not need to provide extra information about your employment status with your online claim.

The Insolvency Service will contact you after you submit a claim and explain what we need.

The secondary application is for compensation for loss of notice pay.

You do this application later, after your notice period ends. You must complete the primary application first.

If you apply for loss of notice pay, the Insolvency Service will again ask you for additional information. This can include: