The Insolvency Payments Scheme protects the former employees of companies that have become legally insolvent.
Employees may claim, through an employer representative, such as the official liquidator or receiver, various outstanding debts including:
Some limitations and conditions apply.
There is a limit of 8 weeks for:
Gross weekly wage is capped at €600 per week.
The debt outstanding must have become due in the 18 months prior to the date of insolvency or employment termination.
The scheme covers employees who are insured for all benefits under social welfare legislation. Generally this means an employee who pays class “A” PRSI.
In most cases the gross weekly wage, subject to a limit of €600, is used to calculate the amount that can be paid under the scheme.
The maximum payment for arrears of wages or holiday pay or minimum notice is €4,800.
Please contact the liquidator, receiver or employers representative in order to make an application.
Applications for debts payable under the insolvency payments scheme must be made by the employer representative, liquidator or receiver and will be submitted by them using the online application form.