The National Insurance Fund will cover these amounts (provided the relevant conditions are all met) up to the limits set in the Employment Rights Act 1996 and the Pensions Schemes Act 1993.
Any claims in excess of the limits must be claimed from the insolvent employer. Employees can make claims both to the Insolvency Service and against their insolvent employer (and against any potential transferee if the business has been transferred) to maximise the chances of recovering some of the money owed.
|Arrears of pay
|Up to a maximum overall limit of eight weeks’ arrears of pay – up to the current maximum statutory limit on a week’s pay (£538), less tax and National Insurance Contributions (NICs).
Arrears of pay includes arrears of equal pay.
Arrears of pay also expressly includes:
• Guarantee payments
• Payments for time off for carrying out trade union duties.
• Remuneration on suspension on medical or maternity grounds.
• Remuneration under a protective award. (Note that the full amount of the protective award is not recoverable from the NIF. The protective award is subject to both the overall limit of eight weeks’ pay and the statutory cap on a week’s pay. Also note that the claim must be established by an employment tribunal.)
|Up to six weeks’ holiday pay (up to the current maximum statutory limit on a week’s pay) taken or accrued in the 12-month period ending on the date of the insolvency, less tax and NICs.
|Statutory notice pay (up to the current maximum statutory limit on a week’s pay), less “notional” tax and NICs. However, the employee is required to mitigate their loss.
|The basic award up to the current statutory maximum. (Note that the claim must be established by an employment tribunal.)
|Statutory redundancy payment less any amount paid by the employer.
|An administrator or trustee of a pension scheme can claim unpaid employer’s pension contributions to an occupational or personal pension scheme up to a maximum of the lowest of:
• Arrears accrued in the 12 months before the insolvency.
• 10% of the last 12 months’ payroll (including holiday and maternity pay).
|Payable on behalf of an employee to either an occupational or a personal pension scheme, if these have been deducted from the employees’ pay in the 12 months before the insolvency.
|A reasonable sum as reimbursement for the whole or part of any fee or premium paid by an apprentice or articled clerk.