Can a company director claim redundancy pay?
A director may qualify for statutory redundancy and related payments if they were genuinely an employee and meet the relevant conditions. Holding a director’s title or receiving dividends is not enough. The Insolvency Service assesses the evidence of employment and the claim.
Business Insolvency Helpline • Checked 1 November 2026
General guidance, with procedural detail focused on England and Wales. Rules and routes can differ in Scotland and Northern Ireland.
What evidence is useful?
Gather the employment contract, payroll records, P60s, bank statements and records of actual work. The service may consider contracted hours, regular wages, holiday arrangements and other features of employment.
A written contract helps, but the facts must match it. Do not create or backdate documents to improve eligibility after the business has failed.
Which payments might be available?
Eligible claims can include redundancy and certain unpaid wages, holiday or notice pay. Each has its own requirements and statutory limits. A redundancy claim normally requires the qualifying period of continuous employment; other payment categories need separate assessment.
Dividends are returns to shareholders and are not interchangeable with salary. A director who took most income as dividends should not assume the same figure will be treated as weekly employment pay.
How should I approach a claim?
Ask the office-holder for the relevant case details and use the official application process. Submit consistent figures and retain evidence. Check any deadline in the official claim instructions rather than relying on a marketing estimate of what directors can recover.
A potential claim should not be treated as guaranteed funding for liquidation. Establish eligibility and likely timing before committing money based on an expected award.
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Related questions
Not automatically. The question is whether you were also an employee and meet the applicable conditions; evidence is assessed case by case.
Do not assume so. Dividends and employment pay are different and must be identified accurately.
No. The government provides an application process. If you appoint someone to help, understand their fee and what they actually do.
Sources checked for this guide
- Check if you can apply for redundancy payments as a company director (www.gov.uk)
- What you can get (www.gov.uk)
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