An employee may be able to claim the equivalent of redundancy money from the State if his employer fails to pay it. This will be the case if either:

1. the employer has failed to pay up even though the employee has taken all reasonable steps to recover the amount due, which will include applying to an employment tribunal for an appropriate order (ERA 1996 s.166(1)(a)); OR

2. the employer is insolvent (ERA 1996 s.166(1)(b));

In either case the unpaid money due is called an employer's payment. In the second case above (ie where the employer is insolvent) the employee does not have to do anything to be entitled to apply for an employer's payment (see ERA 1996 s.166(1)(b)).

The starting point for enquiries is to telephone the Redundancy Payments Office free helpline on 0845 145 0004. Applications themselves are made on form RP1, available from the Insolvency Service (tel: 0845 015 0010 fax: 0845 015 0020) or from Redundancy Payments Offices (see Addresses, tel & fax nos ).

If the claimant is a company director an additional form RP3 ("extra information if you are a director") is required - if appropriate this will be provided automatically by the Insolvency Service on receipt by them of the RP1 form ). Other "extra information" forms will be required if the claimant is a sub-contractor or if the redundancy took place on a sale or transfer of a business or if the claimant has subsequently found new employment.

An Insolvency Service Guide for employees on Redundancy and insolvency (2009 version) is available on the web.

Go to Redundancy/Calculator (redundancy pay) for an easy way to calculate the amount of any statutory redundancy pay entitlement.