Employee redundancy letter template: insolvency context
A redundancy letter from an insolvent company has to do a job a normal one does not: point every employee at the government scheme that will actually pay them, because the company cannot. The letter below sets out what employees can claim from the Redundancy Payments Service, how to apply with the CN case number, the deadlines, and each employee's own claim details to check. Use it with your Licensed Insolvency Practitioner, who often handles dismissals directly: this is information, not employment-law or insolvency advice. gov.uk, your rights if your employer is insolvent (accessed 27 July 2026)
The letter
[Company name] [in creditors' voluntary liquidation / in administration, if applicable]
[Registered office address]
Company number: [number]
[Date]
[Employee name]
[Address]
Dear [Name],
Re: termination of your employment by reason of redundancy
I am sorry to confirm that, because [Company name] [is insolvent and has ceased trading / has entered creditors' voluntary liquidation on [date] / cannot continue to employ its staff], your employment is terminated by reason of redundancy with effect from [date].
The company is not able to make the payments owed to you directly. You can apply to the government's Redundancy Payments Service, which pays statutory amounts to employees of insolvent employers, including: statutory redundancy pay; arrears of wages, overtime and commission; accrued holiday pay; and statutory notice pay.
How to claim
1. Apply online at https://www.gov.uk/claim-redundancy
2. You will need the case reference (CN) number: [CN number, from the insolvency practitioner or official receiver]. You cannot claim without it.
3. Apply for redundancy, wages and holiday within 6 months of your dismissal.
4. Statutory notice pay is claimed separately using an LN reference, which is sent to you after your notice period would have ended.
5. For help with a claim, contact the Redundancy Payments Service on 0330 331 0020 or redundancypaymentsonline@insolvency.gov.uk.
Your employment details for the claim are: start date [date], [weekly/monthly] pay [amount], accrued untaken holiday [days]. Please check these and tell [the liquidator / administrator / me] if you believe they are wrong.
[The insolvency practitioner dealing with the company is [name, firm, contact]. They will write to you about the process and any further claims.]
Thank you for your work for the company. I am sorry it has ended this way.
Yours sincerely,
[Name]
[Director / Liquidator / Administrator], [Company name]
Notes for the director
- Send this only as part of an advised process. Dismissals around insolvency have employment-law consequences, including protective awards for consultation failures, that need professional input before anything is sent.
- Give each employee their CN number as soon as the practitioner issues it; without it they cannot claim.
- Directors who are genuinely employees may have a claim of their own: run the director redundancy calculator and see the director redundancy guide.
- Wages already unpaid? Work through the cannot-pay-wages checklist and the full guide.
Source: gov.uk, your rights if your employer is insolvent, including the apply-for-money-owed pages, accessed 27 July 2026. Claim routes, references and contact details change; check gov.uk before relying on them. This page is general information, not employment-law or insolvency advice.
Redundancy in insolvency: common questions
Who actually pays my employees if the company has no money?
The government's Redundancy Payments Service, part of the Insolvency Service. It pays the statutory amounts listed in the letter above. Employees apply online at gov.uk/claim-redundancy and need the CN case reference number issued by the insolvency practitioner or official receiver; gov.uk states plainly that you cannot claim without the CN number.
When should this letter be sent, and by whom?
As part of an advised insolvency process, with your Licensed Insolvency Practitioner's guidance, and often by the practitioner rather than the directors. Dismissals immediately before or during insolvency carry employment-law consequences, including protective awards where collective consultation obligations were not met, so the timing and wording need professional input. The template is here so you understand what a proper letter contains, not so you can skip the advice.
Are there deadlines my employees need to know about?
Yes. Per gov.uk (accessed 27 July 2026), claims for redundancy, unpaid wages and holiday pay must be made within 6 months of dismissal. Statutory notice pay is claimed separately with an LN reference number, which is sent after the notice period would have ended, usually no more than 12 weeks after dismissal. The Redundancy Payments Service can help on 0330 331 0020 or redundancypaymentsonline@insolvency.gov.uk.
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