What is the insolvency payments scheme?

 Information on making a claim


If your employer becomes legally insolvent you may be able to claim arrears of pay, holiday pay, pay in lieu of statutory notice awards made under employment rights legislation, eg unfair dismissal, discrimination, some pension schemes and personal retirement savings account contributions and other pay related entitlements owed to you by the employer, under the insolvency payments scheme.


When is an employer insolvent?

Under the insolvency payments scheme an employer is insolvent in any of the following circumstances:

  • If the business is in liquidation or receivership

  • The employer has been declared bankrupt

  • The employer has died and the estate is being administered

  • The employer is insolvent under another EU member state


How do I qualify for payment under the scheme?


If you are employed in Ireland, in a job that is fully insurable for social insurance purposes and your employer is insolvent as discussed above then you are entitled to claim. If you would be fully insurable but for the fact that you are 66 years of age or more then you are also covered.

How do I claim?

A claim is usually submitted through the liquidator or other person who is legally winding up the business. The claims are certified by the person winding up the company and submitted to the Department of Social Protection for processing.

If you claim fails you may appeal the decision to the Employment Appeals Tribunal within six weeks of the decision being communicated.

Download your Guide to The Insolvency Payments Scheme here ;


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