Insolvency: Employee Rights
When an employer is insolvent, employees can claim debts (Arrears, Notice, Holiday, Basic Award) from the National Insurance Fund.
Key provision: Employment Rights Act 1996, s.182
Authorities (7)
Secretary of State v Westwood [1984] IRLR 209
Insolvency; notice pay; the Secretary of State cannot deduct tax/NI from notice pay if the claimant didn't actually receive the money.
Morris v Secretary of State for Employment [1985] ICR 522
Insolvency; notice; an employee is entitled to notice pay from the NIF even if they find a new job immediately (subject to mitigation).
Wagner Miret v Fondo de Garantia Salarial Case C-334/92; [1993] ECR I-6911 [judgment]
ECR I-6911 - Insolvency; EU law; state liability for failure to implement the insolvency directive.
Mann v Secretary of State for Employment [1999] ICR 898 [judgment]
Insolvency; notice pay; insolvency payments are subject to the statutory cap.
Titchener v Secretary of State for Trade and Industry [2002] IRLR 195
Insolvency; jurisdiction; the tribunal can determine if a dismissal was unfair to trigger a Basic Award from the NIF.
Rodriguez Caballero v FOGASA Case C-442/00; [2003] IRLR 115; [2002] ECR I-11915 [judgment]
ECR I-4233 - Insolvency; discrimination; excluding certain claims from the guarantee fund was discriminatory.
Chaudhry v Paperchase Products Ltd [2025] EAT 181 [judgment]
Insolvency; a Basic Award is not payable by the Secretary of State without a Tribunal judgment liability.
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Alexander MacMillan, employment law barrister, St Philips Chambers.
These notes are a research aid, not legal advice.