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uk Work & employment crises employer insolvency announcement • employer bankruptcy uk • company entering administration • company liquidation announced • business going insolvent • wages might not be paid • redundancy due to insolvency • redundancy payments service claim • unpaid wages after insolvency • holiday pay owed insolvency • notice pay not paid • employer in cva • job at risk insolvency • workplace closing warning • employer appoints administrators • insolvency practitioner contact • payslips missing payroll collapse • sudden workplace shutdown • employer stops trading

What to do if…
your employer announces the business is entering bankruptcy or insolvency proceedings

Short answer

Secure your pay and employment records, and get the name/contact of the insolvency practitioner plus the exact insolvency process and start date. Do not resign in a rush—get the facts in writing first.

Do not do these things

  • Do not quit “to get ahead of it” without checking how it could affect redundancy, notice pay, or benefits.
  • Do not assume “bankruptcy” means immediate closure—ask which procedure it is (for example administration, liquidation, CVA) and whether the business is continuing to trade.
  • Do not keep working “on trust” without tracking hours and what you’re owed—assume you may need to prove it.
  • Do not sign any new agreement (for example, a “variation”, “waiver”, or settlement) while you’re shocked—take it away first.
  • Do not hand back equipment or clear your desk without getting a dated receipt/list (it can matter later if there’s a dispute about property).
  • Do not rely on verbal promises (“it’ll be fine”, “pay next week”)—ask for written confirmation.

What to do now

  1. Get the basics in writing today. Ask HR/management for:
    • the type of insolvency (for example administration, liquidation, CVA),
    • the date it started / is expected to start, and
    • the name + contact details of the insolvency practitioner/administrator/liquidator handling employee matters.
  2. Confirm who you should treat as “the decision-maker” right now.
    • Ask whether you are still employed as normal, who authorises work/expenses, and whether pay arrangements have changed.
    • If administrators are in place, ask how employee updates will be issued (email, letter, staff portal) and keep those messages.
  3. Secure your evidence (before systems disappear). Save to a personal device/account:
    • recent payslips, P60s, your contract/statement of particulars, and any commission/bonus terms,
    • screenshots/exports of timesheets, rotas, approved overtime, holiday balances, expense approvals,
    • any written messages about pay delays, redundancy consultations, or site closures.
  4. Start a simple “money owed” log. One page is enough:
    • dates worked, hours, rate, unpaid expenses, holiday owed, and what you’ve been told about pay.
  5. If you’re made redundant or your employer cannot pay, be ready to claim through the Redundancy Payments Service (RPS).
    • The insolvency practitioner (or official receiver) will give you a CN (case reference) number—you cannot claim without it.
    • You can claim money you’re owed (for example statutory redundancy, arrears of pay, holiday pay, some commission). For statutory notice pay, you may be directed to a separate step—follow the instructions you’re given when you apply.
    • Put a reminder: GOV.UK says redundancy claims must be made within 6 months of being dismissed—aim to submit as soon as you’re dismissed.
  6. If you’re told there may be a sale or takeover, protect yourself.
    • Ask if it’s expected to be a TUPE transfer, and on what date.
    • Keep copies of anything you’re asked to sign, and keep your own record of what you’re owed up to the transfer date.
    • In insolvency, who pays what can depend on the timing and the type of procedure—keep your evidence either way.
  7. Get fast, UK-specific advice if anything is unclear or you’re pressured.
    • Contact Acas if you’re unsure about your status (employee/worker/agency/contractor), you’re being pushed to accept changes, or wages stop.

What can wait

  • You do not need to decide today whether to accept a new role, move jobs, or “fight it”.
  • You do not need to calculate exact entitlement amounts right now—focus on records and who is handling the insolvency.
  • You do not need to confront colleagues, post publicly, or threaten legal action in the first hours—get facts and paperwork first.

Important reassurance

This situation is genuinely destabilising, and it’s normal to feel panicky, angry, or unable to think clearly. Your best protection in the first day is creating a clean paper trail and avoiding irreversible moves.

Scope note

These are first steps to stabilise things and protect your position in the first hours/days. Later steps may involve formal redundancy processes, claims, or specialist advice depending on the insolvency type.

Important note

This is general information, not legal or financial advice. Insolvency situations vary a lot (and the correct route can depend on the exact procedure and your work status). If anything is unclear or you feel pressured, slow down and get independent advice.

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