Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure GB-1990-1/2604 – measures in United Kingdom
|Country||United Kingdom , applies nationwide|
|Time period||Open ended, started on 01 January 1990|
|Context||Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Employment protection and retention
– Income support for people in employment (e.g., short-time work)
|Author||Claire Evans (Warwick University) and Eurofound|
|Measure added||23 June 2022 (updated 04 January 2023)|
The Insolvency Service administers compulsory company liquidations and personal bankruptcies and deals with misconduct through investigation of companies and enforcement. It is also responsible for making redundancy payments.
The Insolvency Service is part of the UK Department for Business, Energy and Industrial Strategy (UK BEIS), formerly known as the Department for Business, Innovation and Skills (BIS).
It was established by the National Insurance Fund that guarantees the workers' claims. It is financed by contributions from employers, employees and the self-employed.
A public agency called the Insolvency Service advises workers who have lost their jobs as a result of the bankruptcy of their firms and have not received the full wage or salary owed to them. As part of the Insolvency Service, the Redundancy Payments Service (RPS) makes redundancy-related payments to employees whose insolvent employer cannot or will not pay. However, there is a separate system for employees who do not receive their notice pay when their employer becomes insolvent.
Employees may claim wages, overtime, commission and holiday pay, as well as redundancy payment if they were continuously employed by the insolvent business for at least two years. Employees may claim a maximum of eight weeks’ unpaid wages as well as bonuses, remuneration for overtime work, sickness, pregnancy, and a maximum of six weeks’ holiday pay.
Payments are capped at the statutory rate of GBP 538 (€592 as of 13 June 2020) per week for each type of claim.
Employees have to submit their application online to the Insolvency Service where the claims are calculated and the amount directly transferred to the employees.
A company is considered insolvent in case of filing for insolvency, being put under administration or a voluntary agreement with creditors that has been accepted by law, as well as if the entrepreneur has died and the company is administered.
The Insolvency Service publishes annual reports, which include figures of the number of claims. In 2018-2019 the Insolvency Service processed 78,800 redundancy payment requests, and it took an average of 12.2 days for the agency to action the initial claim.
Employees in standard employment
||Applies to all businesses||Does not apply to citizens|
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Insolvency Service, measure GB-1990-1/2604 (measures in United Kingdom), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GB-1990-1_2604.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.