Skip to main content
Home / News and Insights / News / Carillion: Who pays employees when businesses go under?
Bircham Dyson Bell (BDB) LLP and Pitmans LLP merged on 1 December 2018 to become BDB Pitmans LLP. More details can be found here
17 January 2018

Carillion: Who pays employees when businesses go under?

In light of the business news over the last year, including the most current news of Carillion, it is important to know how business failure impacts on employment rights.

If an employer becomes insolvent, employees are able to make a claim for money that they are owed (much like a creditor). The difference? The money is paid to those employees by the government and not the company. Statutory notice pay, unpaid pension contributions and statutory redundancy are just some of the claims employees can make which will be (if successful) paid by the government. Each claim is capped at £489 per week and employees can claim for more than one issue (for example, statutory notice pay and unpaid pension contributions).

Employees can contact the Insolvency Service if they find themselves in such a situation.

Related Articles

London and Cambridge Offices

London Westminster
50 Broadway, London
SW1H 0BL

Cambridge
51 Hills Road, Cambridge
CB2 1NT

Reading and Southampton Offices

Reading, The Anchorage
34 Bridge Street Berkshire
Reading RG1 2LU

Southampton, The Avenue
Grosvenor House, Grosvenor Square
Southampton SO15 2BE

Follow us

  • Pay my invoice
  • Lexcel
  • CYBER ESSENTIALS PLUS

© BDB Pitmans 2019. 50 Broadway, London, SW1H 0BL - T +44 (0)345 222 9222