Frequently Asked Questions (FAQs) for Applicants

What is the redundancy payment system?

The redundancy payment system is an online service that allows you to submit and manage your redundancy related claims if your employer has become insolvent.

It replaces paper forms and provides:

• One online place to submit your claim
• Clearer updates on progress
• Fewer forms and less duplication

What's changing?

• Claims are made online instead of by paper.
• You can track progress digitally.
• Updates are sent electronically.

What's staying the same?

• Eligibility rules do not change.
• What the NI Redundancy Payment Service (RPS) pays, and statutory limits, remain the same.
• Payments are still assessed and paid by RPS.

Decisions and appeals

How do I appeal the rejection of my claim?

If your claim is rejected, you’ll be told why and given information about how to challenge the decision or provide additional evidence.

Eligibility and insolvency

Am I eligible to make a claim?

You may be eligible if your employer has gone insolvent, your employment has ended due to the insolvency and your employer owes you statutory payments such as redundancy pay, unpaid wages, holiday pay, or notice pay.

What’s the difference between insolvency and non-insolvency?

Insolvency is when an employer can no longer pay its debts and has entered a formal insolvency process. This usually means an insolvency practitioner (IP) has been officially appointed to manage the employer’s affairs, for example through liquidation or administration.

If your employer is insolvent, RPS can assess and pay eligible statutory payments, such as redundancy pay, unpaid wages, holiday pay, and notice pay, through this system.

Non‑insolvency means the employer is still trading or has not entered a formal insolvency process. In these cases, you may still be entitled to redundancy pay, but this will require a tribunal judgment.

I don’t know who the Insolvency Practitioner is - what should I do?

In some cases, an IP may not be appointed immediately. You may also wish to contact your former employer to enquire if they have engaged the services of an IP.

You can also:

• Check Companies House (if your employer is a limited company).
• Wait until an IP has been formally appointed before submitting a claim.

This helps avoid raising claims against an employer that is not yet insolvent.

I am a Company Director - does that make a difference?

Being a director makes no difference to the application process- the IP will add your details and mark your claim as a 'Director'. However, there will be extra form(s) that will require completion, as there are more checks needed to confirm your employment status. These additional forms are available on our website.

I took a break in my employment - will that affect my redundancy?

Certain absences e.g. temporary shortage of work can count towards continuous service even if your contract of employment was suspended. However, days lost through industrial disputes or working abroad, and not paying National Insurance contributions in the UK, do not count towards your length of service.

I have been told that I should not claim benefits or find new employment as this will affect my redundancy entitlements- is this true?

Failure by your employer to give proper notice is a breach of contract for which you are entitled to compensation.  The courts have said that the compensatory notice payment we make is similar to a common-law damages’ payment. That means that the payment must compensate you for the actual loss you suffered, so we must reduce it by any income you have received or should have received during the statutory notice period. In other words, you can only receive what you would have earned if you had been allowed to work your notice. you are expected to pursue new employment or claim appropriate benefit entitlements. If you do not claim benefit whilst seeking new employment, we will deduct the benefit you should have claimed from your compensatory notice pay.)

My employer has confirmed that they cannot afford to appoint an insolvency practitioner - can I make an application?

Where confirmation has been received that an IP will not be appointed, RPS may still be able to process a claim for redundancy payment only. In these circumstances, specific eligibility criteria apply. 

The claimant must be in the process of, or have already completed, proceedings with an Industrial Tribunal and have received a Judgement. RPS will use the Tribunal determination as the basis to make payment of the redundancy entitlement and will seek recovery of the amount from the former employer. 

Where a company is not legally insolvent, RPS is limited to considering redundancy payments only. RPS is unable to make payments for outstanding wages, holiday pay, or notice pay in such cases. You will need to complete an RP1 Redundancy Payments Application Form and send to the Redundancy Payments Service,  who will begin the process of setting up an account for you to confirm on the portal. You can find this form at Redundancy Payments Online - forms and advice. 

Errors and changes

I made a mistake in my claim – how can I edit it?

• If your claim has not been submitted, you can amend it yourself.
• If it has been submitted, contact the Redundancy Payments Service as soon as possible via email or using the messaging service in the 'Messages' section on the portal.

What happens if I change my bank account after submitting my claim?

You must notify RPS immediately to update bank details before payment is issued.

Help and support

Who do I contact if I need help or support?

For technical issues (for example, problems logging in or accessing the system) contact the DfE IT Helpdesk. 

For questions about your claim contact the Redundancy Payments Service. 

I am a claimant with additional support needs - who do I contact if I am struggling to complete the application process?

We are committed to ensuring accessibility for all claimants, particularly those with disabilities or who may be considered vulnerable. Reasonable adjustments and appropriate support are offered to remove barriers, promote inclusion, and ensure fair and equitable access to services. If you need extra support in terms of completing the application process, contact the Redundancy Payments Service. 

Payments

How long will it take to receive payment?

Timelines vary depending on:

• Whether the IP has entered all information to the portal for you to review.
• Whether you have reviewed and confirmed all information submitted by the IP is correct.

Payment(s) will issue as soon as the above steps are completed, and RPS has assessed your entitlements.

The portal will show your claim status as it progresses.

Do I need a bank account to receive payment?

No. If you do not have a bank account a payable order will be used to send payment. Payments made to a bank account need to be a well-known UK high street bank account. We are unable to accept digital only accounts such as Revolut, Monzo, Chase, or similar providers.

Will I receive one payment or multiple payments?

You may receive more than one payment, depending on what you’re entitled to (for example, redundancy pay and unpaid wages).

What does the NI Redundancy Payments Service pay?

RPS can pay statutory amounts for:

• Redundancy pay
• Arrears of pay
• Holiday pay
• Notice pay
• Unpaid pension contributions (payment will be sent directly to the pension administrator)

The following payments can be paid should you be successful obtaining a Judgement from an Employment Tribunal:

• Protective Award 
• Basic Award (Unfair dismissal)

Each payment is subject to legal caps and limits. Contractual amounts above statutory limits are not paid.

Will I be told how much I will receive?

Yes. After your claim is assessed and processed by RPS you will receive a breakdown of any statutory payments you are entitled to.

Will receiving redundancy payments affect my benefits?

Some payments may affect certain benefits. You should notify your benefits provider for further information. Guidance is available from the relevant NI benefits agency.

I have been made redundant and want to claim for holiday pay, how does it work?

RPS can make a payment to you in respect of holidays you took but weren’t paid for, or holidays you had accrued but didn’t take up to the date of your redundancy, within the 12 months before your employer became insolvent. Holidays must fall within the correct leave year. Holidays are also subject to certain legislative restrictions, such as statutory weekly limit cap and the maximum amount of 6 weeks which can be paid.

Why am I being taxed at a much higher rate than my normal tax rate?

When RPS pays insolvency-related payments, we must apply tax without having access to your normal PAYE records. Because of this, HMRC requires us to use emergency tax rules, which often results in a higher deduction upfront. RPS then reports the deductions to HMRC who can recalculate your actual annual income and refunds the difference. Tax applies to all insolvency payments, no matter how you normally pay tax.

Are the payments subject to any caps/ deductions?

The limits are as follows, however they are subject to change:

• Maximum statutory weekly rate of pay – this changes every year. All rates of pay are capped at the relevant statutory cap.
• Statutory Redundancy Pay is based on age and complete years of service (up to 20 years/ 30 weeks) / weekly pay (subject to the statutory weekly cap) 
• Arrears of Wages - RPS can pay up to 8 weeks of unpaid wages.
• Holiday Pay - RPS can pay up to 6 weeks of accrued holiday pay in the 12-month period before the employer became insolvent. 
• Notice Pay (Loss of Notice) - RPS can pay up to 12 weeks’ notice pay, depending on years of service. You must claim this after the notice period has ended. It is also subject to deductions; as it is a compensatory payment, any new income obtained through new employment or benefits, in the period will be deducted.

These statutory limits are subject to change.

I work an irregular work pattern, what weekly rate of pay do I use?

If you do not work the same hours or earn the same wage each week, an average of the last 12 weeks’ pay will be used, as per legislation.

How will I know when I can claim for compensatory notice pay?

Your 'Projected Date' must pass first before you can claim for notice.  An email notification will be issued to you to alert you when this claim is open.  You will be asked information relating to your notice period such as details of any benefits claimed and/or new employment obtained.  You may be required to submit evidence to support your claim such as screenshots of Universal Credit statements, JSA correspondence and/or payslips.

Tracking and updates

How can I track the progress of my claim?

You can track your claim directly in the online system, which shows:

• Whether your claim has been submitted.
  • If it is being reviewed.
  • When a decision has been made.
  • Regular emails will also be sent to update you on the progress of your claim.

How will I receive updates?

Updates will be shared via:

• Email notifications.
  • Messages within the online system.

Using the portal

How do I access the system?

You will receive an email invitation containing a secure link to create an account. Check your spam / junk folder.

What if I don't have an email address?

To access the system, you MUST have an individual email address and National Insurance number. In Northern Ireland, you can get free, confidential help accessing government services through local Citizens Advice offices, which offer in-person support across all 11 council areas.

You can seek help from someone you trust (such as a friend, relative, trade union representative or adviser) or request assistance from the IP. 

You can give permission for someone to act on your behalf however the claim remains your responsibility. 

Can my nominated representative access the portal on my behalf?

There may be options to support representation, but account access is personal.

Sharing log ins is not recommended and may raise data protection risks.

If you do not have digital access or require assistance you can seek help from someone you trust (such as a friend, relative, trade union representative or adviser) or request assistance from the IP.

What information will I need?

You may be asked for:

• National Insurance number
  • Date of Birth
  • Employment start / end dates
  • Pay details and unpaid amounts
  • Holiday entitlement and usage
  • Bank account details
  • Payslips or employment documents (if available)

Can I fully access the system on my mobile?

Yes. The redundancy payment system is accessible on mobile, tablet, and desktop.

Do I need to send documents?

Sometimes. You may be asked to upload pay slips, contract details, or other evidence to support your claim. 

Once you have access to the portal you will be able to upload these in the 'Documents' section.

Any documents uploaded will be visible to you, the IP, and RPS.