What is Insolvency Benefit?
Insolvency Benefit was introduced on 1st December 2012.
Its purpose is to provide employees with financial help if their employment ends because their employer has become insolvent.
The employer must have become insolvent after 1st December 2012 for the rules to apply.
Full details are available on ‘Government‘ website.
The way the benefit works
A formal insolvency procedure must have been started before Insolvency Benefit can be applied for.
In addition, to qualify for Insolvency Benefit, a number of conditions must be satisfied by the employee.
How is Insolvency Benefit calculated?
The amount of Insolvency Benefit that an employee might receive is based on a set proportion of money that is owed to them by their employer. This includes any money due for unpaid wages, holiday pay, statutory notice pay and statutory redundancy pay.
The maximum amount currently payable in Insolvency Benefit is £10,000.
How to apply
A claim form for Insolvency Benefit is available on the Government website or from Customer and Local Services.
You can contact Customer and Local Services for more information:
Customer and Local Services, Philip Le Feuvre House, La Motte Street, St Helier.
Telephone: +44 1534 444444
Opening hours: Monday to Friday, 8.30am to 5pm