Guidance

Check if you can apply for redundancy payments as a company director

This guidance is for company directors who are claiming redundancy related payments from the Insolvency Service.

Applies to England, Scotland and Wales

You must be an employee to be eligible for redundancy payments.

As you were a company director and office holder, we will ask you some questions about your directorship when you submit your application. This will help us confirm your status as an employee.

We will consider your claim if:

  • the company has been incorporated and traded for more than 2 years
  • you had a contract of employment, written memorandum or other agreement that reflects your work situation. If you do not have a copy of a written agreement, we may ask you to provide details of the terms and conditions of your employment
  • you received payments under a PAYE scheme

Information you will need to complete your claim

Read our redundancy payments factsheet for information you need to provide when you submit your claim.

As you were a director of the company, we will ask you for information about your directorship, including:

  • whether you were also a shareholder in the company
  • how much you earned from your employment over the last 3 tax years, before you were dismissed. You can find this information on your P60s
  • whether you earned less than minimum wage in the last 3 years. We will share information on potential National Minimum Wage misconduct with our investigators and HMRC

If you have been paid less than National Minimum Wage you may also need to apply to HMRC to provide us with your employment history.

If you intend to claim for loss of notice pay we may also ask you:

  • whether you were responsible for starting discussions with the insolvency practitioner, and if not, to provide details for the director who was responsible
  • the date when the insolvency practitioner was contacted
  • the date when the insolvency practitioner advised that the company should go into a formal insolvency

Redundancy payments director assessment process

Once we have received your completed application, we may request documentation to support your claim. We may ask for evidence including:

  • wage slips
  • dividends received
  • company accounts and bank statements
  • P60s
Published 11 February 2022
Last updated 3018 SeptemberOctober 2022 + show all updates
  1. Removed “the company has been in-corporated and traded for more than 2 years” as a requirement for us to consider a claim.

  2. Removal of 'you worked a minimum of 16 hours per week' from criteria that must be met for us to consider a claim.

  3. Further guidance added on information a director will need to complete a claim

  4. First published.