I’ve been made redundant due to my employer entering CVA, receivership, liquidation or administration. What now?
If you just been told that your company has gone into administration then email me at robertm@ksagroup.co.uk Please give us the name of the company and I will find out what I can for you.
In return please can you social “like”, “tweet” or “bookmark” this page so others can find out about it.
Thanks. Alternatively you can look at our Facebook page for redundant employees or download our employee guide for insolvency situations.
Or you can watch this video that explains your rights.
This can be a real shock to you and we know that many people get very little help from the receiver or administrator. So read our guide below and or download this guide from DBT,
DBT guide for employees
If you have any questions the guide or the Department for Business Energy Innovation Skills (formerly DTI and DBERR) should answer them, otherwise email us and we will try to help.
Department for Business and Trade (DBT)
There is a helpline to answer your questions. The number to ring is 0845 145 0004 (calls are charged at local rates).
Once the total claims have been worked out the employees can claim directly from the Department for Business and Trade (DBT) who then stands in the employees’ shoes and can claim against the company.
The purpose is to guarantee minimum payments to the employees which may not (and often are not) paid out of the insolvency as a result of insufficient funds or to avoid preferences. All employees claims are calculated as per the guidelines in the legislation but the actual payments made by the Government are subject to maximum “capped” payments. The limit on the amount of a week’s pay under the insolvency provisions of the Act is currently £751 per week, as of April 2026, the cap is reviewed annually.
Most people are paid weekly or monthly in arrears. This claim is limited to 8 weeks at the statutory limit of £751 per week and includes salaries, wages and sales commissions.
Holiday pay is limited to 6 weeks of holiday pay due, in the current holiday year, at the statutory limit of £751 per week. I.e you won’t be paid “rolled” over days
Under the contract of employment between employer and employee any required notice amount due from the employer is payable at the statutory limit of £751 per week. However, benefits and/or money earned obtained further employment during your notice period paid to you will be deducted from your compensation. It is important to claim benefits as these will be automatically deducted from your claim even if you have not claimed them.
Redundancy is where the employer has ceased or intends to cease the business, or the business in the place where the employee is employed. The requirements of that business for the employee to carry out his or her particular kind of work, or to carry out a particular kind of work in the place of the employee’s employment have ceased or diminished, or are expected to cease or diminish. Any amount payable is capped at a ceiling of £751 per week. This statutory redundancy payment is calculated by reference to the following factors.
Here is a calculator to show how much is owed to you. https://www.gov.uk/calculate-your-redundancy-pay
The maximum number of years to be taken into account for the purposes of calculating a redundancy payment is 20 and the entitlement is calculated as follows:
As ever redundancy claims are complex and the brief outline here is not comprehensive or case specific.
If your employer is declared insolvent, or cannot or refuses to pay, and you have done everything you can to get your payment, you can apply to the Department for Business and Trade (DBT) for a direct payment from the National Insurance Fund.
But you must have applied in writing to your ex-employer for a payment within six months of the date your employment ended, or applied successfully to an employment tribunal within the six months after that.
Please be aware that Department for Business and Trade (DBT) will seek to mitigate payments to redundant employees by assuming that they are claiming job seekers allowance. Any pay received in the period between redundancy and claim payment will generally be deducted. So it’s probably best practice to make those claims anyway to help relieve financial hardship.
Written ByKeith Steven
Turnaround Director
Keith is the Turnaround Director of RMT Accountants & Business Advisors. Prior to being acquired by RMT his company KSA Group has undertaken more than 300 CVA led rescues. Read our case studies to see how.
Making Employees Redundant To Save Your Business
Do you need to make a member(s) of your staff redundant? When facing business debt problems, one of the key decisions to make as owner or directors is this: do some roles need to be made redundant to save costs. Is the business going to be smaller if you use a CVA, or sell it through administration for example.Here are some key things to take into consideration. If you fail to act appropriately and correctly redundant employees can make a claim against your company. You could also face tribunals and fines for not acting correctly.If you don’t think your company can afford to make redundancies then read this page for information on how you can do it at NIL COST What is redundancy? Redundancy is the act of an employee losing their job as the job or role they perform is no longer needed. So, when is redundancy necessary? Cost cutting reasonsFor example resizing the company, closing certain departments or branches, perhaps due to an insolvency event such as administration or a company voluntary arrangement.When there is no longer a need for the full-time role. In this case, where a full-time role may no longer be available but there may be a suitable part-time or other alternative role, the employer should offer any suitable alternative employment that is available.If the employee unreasonably refuses a suitable alternative role, they may lose their right to statutory redundancy pay. Employees also have the right to a 4-week trial period in an alternative role. Full business closure, either temporary ( refurbishment) or permanentSo, remember, it is vital to only proceed with redundancy when appropriate as it will impact the employees and your business significantly.A number of alternatives can always be looked into, if trying to cut costs; reducing overtime, freezing any increases to salary/wages, putting a halt on any further recruitment, terminating contracts of temporary or agency staff.When redundancies are compulsory, for example, when employees need to be let go to save business costs and avoid insolvency there are certain criteria you can use to ensure the staff you choose to make redundant is fair. Typically use;Standards of work produced Attendance and disciplinary records Length of employment/service (it is important to avoid age discrimination here) Skills, experience and appraisal data (be careful to avoid sex/disability discrimination)Some employees may self-select and volunteer to be made redundant (usually if they are close to retirement age anyway and their redundancy pay will be worthwhile). Be sure to use previously agreed redundancy procedures made with unions if applicable too.It is vital for you as an employer to…Keep the employee informed with what is happening. Consult the employee and give an honest explanation as to why they have been selected to be made redundant. There is a period of consultation based on the amount of employees being made redundant.For between 20 and 99 employees being made redundant, collective consultation must start at least 30 days before any dismissals take effect. For 100 or more redundancies, this minimum period is 45 days. If fewer than 20 redundancies are proposed, there is no fixed minimum collective consultation period, but employees should still be consulted properly.Look into all other options and discuss this with the employee; are there any alternative employment positions you can offer? Can they be transferred to a different department of the company? Or a different branch? Alternative employment positions must be of a similar nature.The three key aspects of making an employee redundant are;consultation selection offer alternatives.What rights do redundant employees have? When dismissed due to redundancy, employees are entitled to statutory redundancy pay, provided the following conditions apply:they are an employee of the company, not a subcontractor they have had at least two years of continuous service they have been dismissed by reason of redundancy.The sum of redundancy pay they will receive depends on their age, weekly pay and length of service, subject to the statutory rules. The current weekly cap is £719, and the current maximum statutory redundancy payment is £21,570. From 6 April 2026, these rise to £751 a week and £22,530 respectively.Do also check the employment contract for the employee as they may have alternative conditions. For example, one month’s pay per year of service. If this is the case, the contract entitlement would be followed instead. In any situation, the highest amount is always paid, be it the contractual or statutory amount.Before a staff member can be made redundant, their notice period must be served and this must usually be paid for. You can have more than the statutory minimum, so long it is agreed, but not less. Currently the notice periods are, at least one weeks’ notice if employed between one month and 2 years, one weeks’ notice for each year if employed between 2 and 12 years and 12 weeks’ notice if employed for 12 years+. Be aware that in some situations the employee can be paid in lieu instead, depending on their employment contract entitlements. When employees serve their notice period, allow them paid time off to look for alternative employment.Any accrued, untaken holiday pay will need to be paid for. If the employer is insolvent, holiday pay that can be claimed from the government is capped at 6 weeks, subject to the statutory weekly limit of £719.Although redundancy payments are tax-free up to £30,000, for holiday pay, both income tax and national insurance are applicable. More about employee rights when being made redundant can be found here.If your business or company cannot afford to make redundancies, this may indicate serious cash-flow problems and you should take advice promptly.A company is insolvent when it cannot pay its debts when they fall due, or when its liabilities exceed its assets. If the business could still be viable after costs are reduced, options such as a company voluntary arrangement may be considered.If the employer becomes formally insolvent, eligible employees may be able to claim statutory redundancy pay, holiday pay, arrears of pay and statutory notice pay from the Insolvency Service, subject to the statutory limits.Any redundancy pay or lieu of notice post an insolvency event may be paid though the Redundancy Payments Service (RPO)Redundancy Payments Service Insolvency Service redundancypaymentsonline@insolvency.gov.uk Telephone: 0330 331 0020 Monday to Thursday, 9am to 5pm Friday, 9am to 3pmSee the video below for more information
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National Car Parks (NCP) Has Gone Into Administration
National Car Parks (NCP) has entered administration, placing 682 jobs at risk. Administration is a formal insolvency procedure designed to protect a company from creditor action while an administrator assesses whether the business can be rescued, sold, or restructured. In many cases, administrators will attempt to sell the company as a going concern to preserve jobs and maximise returns for creditors. The UK car park operator said demand for parking has not returned to pre-pandemic levels, highlighting “shifts in commuting and customer driving patterns” that have affected revenues. The company said it had been consistently losing cash and was ultimately unable to meet its financial obligations. It also struggled to exit a number of “long-term, inflexible” lease agreements tied to loss-making car park sites. Administrators from PwC have now been appointed and are seeking a buyer for the business, which they say represents the “best outcome” for creditors. "All sites are open, staff remain in post, and trading continues as normal," PwC added. "We will be engaging with landlords, employees, and other stakeholders as we explore all options," PwC said. NCP is one of the largest car park operators in the UK, managing around 340 car parks nationwide, including sites located at airports, hospitals and major transport hubs. According to a recent filing by its parent company, NCP’s liabilities exceeded the value of its assets by £305m as of 30 September last year. PwC said the business had a “high concentration” of inflexible lease agreements, which limited its ability to reduce costs or close unprofitable sites. Zelf Hussain, joint administrator and PwC partner, said the company had faced “a challenging trading environment” in recent years. "Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business." It does seem that the rents that they were paying were too high given the changing patterns of behaviour. One presumes they had very long leases of 10 years+ Only administration can release them from these lease obligations. Local councils who are likely the main freeholders of the sites are likely to take a hit on the loss of rent. Sir Donald Gosling and Ronald Hobson teamed up to found what became NCP after investing £200 in a bombsite in central London in October 1948. They sold the business in 1998 for £500m and it is now owned by a Japanese Conglomorate Park24 Many years ago Sir Donald Gosling, one of the co-founders who owned the business, was amongst the richest individuals in the UK and frequently appeared in the "Sunday Times Rich List" He at one time had one of the biggest Super Yachts in the world. How times have changed! He set up the Gosling Charitable Foundation that has done great works in the Naval arena
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Denby Pottery In Administration Today
Update 31th March. The company has officially entered into administration with potential buyers lined up. Renowned pottery manufacturer Denby has confirmed plans to appoint administrators after facing significant financial pressures in recent years. The Derbyshire-based company, which was founded in 1809, has been a well-known name in British ceramics for more than two centuries. The business was previously rescued in 2009 when it was acquired by investment firm Hilco Capital. In a statement released on Thursday, The Denby Group confirmed it had filed a notice of intention to appoint administrators, describing the move as “a precautionary measure”. The company said it had been unable to secure a suitable investment partner despite exploring a range of options. According to the company, a combination of reduced demand, rising employment costs and sharply higher energy prices has placed increasing financial strain on the business. Denby also said that tighter financial markets had made it more difficult to access new funding. "While Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of its historic British brands much loved by their large global fan base," the statement said. "The search for a suitable partner will continue whether for the Denby Group as a whole or for the brands individually." The company added that the notice of intention provides short-term protection from creditor action while it continues to explore funding and restructuring options. It confirmed that Denby and its subsidiary Burgess and Leigh will continue trading during this period, along with the company’s international subsidiaries. 'A worrying time' Following the announcement, union representatives said the situation would be concerning for employees. GMB union organiser Craig Thomson said it was a "worrying time" for Denby workers. "Denby pottery is a British icon, producing some of the world's finest ceramics," he said. "This is a worrying time for workers across Denby. We are working closely with our members and reps on site. "Britain's ceramics industry is the envy of the world. "We must now see urgent government action on energy prices to support the sector through this time of turbulence." Derbyshire Labour MP Linsey Farnsworth also said she had held an "urgent meeting" with the company and had been in contact with the GMB union. Farnsworth, who represents Amber Valley in Derbyshire, said: "Denby remains a world-class, viable manufacturer that continues to trade and meet demand. "I am acting as a direct link between the company and the Department for Business and Trade to ensure every possible avenue is explored to secure a positive outcome for Amber Valley." 2025 and 2026 have been a difficult years for the industry. Royal Stafford also went into administration in February (2025). Other closures include Dudson (2019), Wade (2023), and Johnsons Tiles (2024).
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Global Counsel in Administration Move
Sky News reports that Global Counsel, the advisory and lobbying firm founded in 2010, is set to enter administration following a rapid loss of clients and revenues. The firm, which employs around 130 staff, was destabilised after severing ties with its founder Peter Mandelson, amid reputational concerns arising from his past associations. Despite the appointment of a new leadership team, the scale and speed of client departures left the business without a viable trading future.According to Sky News, employees were informed that administrators would be appointed imminently, office leases surrendered and redundancies expected. The board has since confirmed that it intends to apply to the court for the appointment of Interpath as administrator, noting that any ongoing client servicing would be extremely limited and that a significant number of redundancies are unavoidable.From an insolvency perspective, administration is designed primarily as a rescue process and must demonstrate a better outcome for creditors than an immediate liquidation. In this case, that may be difficult to achieve. The firm’s brand has suffered significant reputational damage, which materially reduces the prospects of a going-concern sale or meaningful trading continuation.The sudden nature of the collapse also highlights a key commercial vulnerability within the PR and public affairs sector. Client contracts commonly include provisions allowing immediate termination where the adviser itself becomes a reputational risk. Once confidence is lost, income can fall away almost overnight, leaving little opportunity to stabilise cashflow or restructure the business.If the administration does not result in a sale or rescue, the administrators’ role will focus on an orderly wind-down, including redundancies, exiting property commitments and seeking to recover unpaid client invoices where possible for the benefit of creditors.Addendum: a familiar pattern in the PR sector This sequence of events is similar in the collapse of Bell Pottinger, which entered insolvency in 2017 following severe reputational damage and an immediate exodus of clients. As with Global Counsel, Bell Pottinger’s downfall was not caused by a gradual deterioration in trading performance but by a sudden loss of trust that rendered its business model unworkable almost overnight.In both cases, the absence of long-term contracted income and the reliance on reputation as a core asset meant that once clients exercised termination rights, the firms were left with little protection against rapid cashflow failure. That structural fragility significantly limits the scope for recovery once confidence in the brand has been lost.
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BrewDog Sold For £33m
Update 27th March Tilray Brands from the US has bought the firm for £33m it has been reported. The company owed a staggering £550m to its creditors it has been revealed by the administrators official report. ___________ BrewDog, the Scottish craft brewer best known for brands such as Punk IPA, has confirmed it has appointed AlixPartners to run a “structured and competitive” process to assess the business’s next phase of investment. This move that has fuelled speculation the company could be sold, or potentially broken up into separate parts. In a statement, BrewDog said the decision follows “a year of decisive action in 2025” focused on cost control and operating efficiencies, describing the appointment as a “deliberate and disciplined step” aimed at strengthening the long-term future of the brand and its operations. The company also stressed that bars and breweries will continue to operate as normal while options are evaluated. AlixPartners is widely recognised for its work in, turnaround and restructuring. It is often engaged by businesses that are under pressure or looking to make significant changes quickly. Its reported that the process could explore multiple outcomes, from attracting fresh investment to an outright sale, with some commentary suggesting bidders may be interested in different elements of the group (for example, the brewing/brands side and the bar estate) if a break-up delivers better value than a single transaction. For customers and employees, BrewDog’s message is reassurance: day-to-day operations continue and “no decisions have been made”. For stakeholders, the key point is that this is now a structured process rather than informal market soundings — meaning the company is likely to move at pace to test appetite and options. This announcement is another sign of how hard the hospitality markets remain, with input costs, wage pressures and cautious spending continuing to squeeze margins across the sector. If your business is facing similar pressures and you are worried about trading or paying creditors then it is vital to act early. This makes any sudden issues more manageable.
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