Employment Rights Act 1996, section 182

Employee’s rights on insolvency of employer

Part XII Insolvency of employers

If, on an application made to him in writing by an employee, the Secretary of State is satisfied that—

(a)the employee’s employer has become insolvent,

(b)the employee’s employment has been terminated, and

(c)on the appropriate date the employee was entitled to be paid the whole or part of any debt to which this Part applies,

the Secretary of State shall, subject to section 186, pay the employee out of the National Insurance Fund the amount to which, in the opinion of the Secretary of State, the employee is entitled in respect of the debt.

Definitions used in section 182 4

employee

(1) In this Act “employee” means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

Defined in s.230(1) · see it in the full Act
employer

(4) In this Act “employer”, in relation to an employee or a worker, means the person by whom the employee or worker is (or, where the employment has ceased, was) employed.

Defined in s.230(4) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
employment

(5) In this Act “employment”—

(a)in relation to an employee, means (except for the purposes of section 171) employment under a contract of employment, and

(b)in relation to a worker, means employment under his contract;

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
the appropriate date

In this Part “the appropriate date”—

(a)in relation to arrears of pay (not being remuneration under a protective award made under section 189 of the Trade Union and Labour Relations (Consolidation) Act 1992) and to holiday pay, means the date on which the employer became insolvent,

(b)in relation to a basic award of compensation for unfair dismissal and to remuneration under a protective award so made, means whichever is the latest of—

(i)the date on which the employer became insolvent,

(ii)the date of the termination of the employee’s employment, and

(iii)the date on which the award was made, and

(c)in relation to any other debt to which this Part applies, means whichever is the later of—

(i)the date on which the employer became insolvent, and

(ii)the date of the termination of the employee’s employment.

Defined in s.185 · see it in the full Act

Cases considering section 182 14

Graysons Restaurants Ltd v Jones & Ors

[2019] EWCA Civ 725 · 17 April 2019Interprets

Interprets section 182 as requiring payment where the employer is insolvent, employment has ended and the employee was entitled to a Part XII debt on the appropriate date. (see paras [10]-[11]; [34])

Secretary of State for Business, Enterprise & Regulatory Reform v Neufeld & Anor

[2009] EWCA Civ 280 · 2 April 2009

Section 182 conditions payment from the National Insurance Fund on the applicant being an employee whose insolvent employment has ended and who is owed a qualifying debt. The court applied the employee-status condition to both respondents. (see paras [4]-[6]; [91]-[94])

Mohammed Shazan Chaudhry v Paperchase Products Limited & Anor

[2025] EAT 181 · 10 December 2025

The court applied the three statutory conditions for National Insurance Fund payment. For a basic award, the condition of entitlement on the appropriate date was not met until a tribunal award had been made. (see paras [65]; [67]-[71])

5 more judgments, and what each says about section 182, are in the case-law panel in the full Act.