Director redundancy claims
Many directors can claim redundancy pay, and other statutory payments, when their company is liquidated. If you were genuinely employed by your own company, under a contract of employment, paid through PAYE, and with at least two years of continuous service, you may qualify as an employee and claim from the government-backed Redundancy Payments Service, just like any other member of staff. Redundancy Payments Service; gov.uk
- Who can claim
- Director-employees: contract, PAYE, 2+ years service (no minimum hours)
- Paid by
- The Redundancy Payments Service (National Insurance Fund)
- Also claimable
- Unpaid wages, holiday pay and notice pay
- Why missed
- Directors assume redundancy is only for employees
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An overlooked right
It is one of the most overlooked rights in a company insolvency, because people think of redundancy as something only employees get. There is no minimum weekly hours requirement, so part-time working directors can qualify on the same basis. Because eligibility turns on the detail of how you were engaged, it is worth checking carefully.
It does not come out of creditors' pockets
Because the payment comes from the National Insurance Fund rather than company assets, claiming doesn't reduce what creditors receive. It is a statutory entitlement, not a trick. Use our director redundancy calculator for an estimate, then a practitioner handling the liquidation can help you claim.
Related data
Our UK company insolvency tracker: The latest monthly company insolvency figures, the trigger for most redundancy claims. Every page on our data hub names its official source.
Where to go from here
- If you decide to speak to a Licensed Insolvency Practitioner, choose your own: our practitioner directory lists every practitioner on the official Insolvency Service register, and how to choose an insolvency practitioner explains what to ask. Always confirm their entry on the official register before you instruct anyone.
Common questions
Can a company director claim redundancy?
Often yes, if you were genuinely employed under a contract, paid via PAYE, and had at least two years continuous service (gov.uk). There is no minimum-hours test. Eligibility depends on the facts, so it is worth checking.
How much can a director claim?
Statutory redundancy is based on age, length of service and weekly pay up to a cap, so claims commonly run to several thousand pounds, and you may also claim unpaid wages, holiday and notice pay.