Can Employees issue a Winding Up Petition for Unpaid Wages?

Can an employee wind up a company?The first step in the process is to file a winding up petition with the court. This can be done by either the employer or the employee. The petition must include the amount of unpaid wages, as well as interest and any other fees that may be owed.

The court will then set a date for a hearing on the petition. After the hearing, the court will decide whether or not to grant the petition. If the petition is granted, the case will be sent to The official receiver who will collect the outstanding debt from the employer.

If the debt is not paid, the liquidator may sell the employer’s assets in order to repay the debt and costs incured to the employee.

Can an employee wind up a company?

Yes employés can file a winding up petition for unpaid wages, the outstanding claim for unpaid wages must be over £750.00. If the winding up petition isn’t disputed, adjourned or the outstanding wages and court fees have been paid by the employer, the Court grants a winding up order to force the company into compulsory liquidation.

At the same hearing, the Court appoints an official receiver or liquidator to sell the company’s assets and to distribute the proceeds fairly amongst creditors once the fees, charges and additional expenses of the liquidation have been deducted.

What if the company already has a petition against it?

If the company has already been served a petition by a creditor or another employee, the you can join and support the petition. If the petition is successful and the court grants a winding up order the official receiver has been appointed, it is likely that other employees will be owed money.

In this situation, an employee should register as a creditor with the liquidator if the debt is not covered by the National Insurance Fund (NIF) or claim from the NIF through the liquidator.

How does a Winding Up Petition Affect an Employee’s Rights?

A winding up petition is a legal document filed by creditors in order to force a company into insolvency. If the petition is successful, the company will be wound up and its assets will be sold off in order to repay debts. As a result, all employees of the company will lose their jobs. In addition, any employees who are owed money by the company may not be able to recover these debts if the company is wound up.

Finally, any employee who has a contract with the company may find that this contract is no longer valid if the company is wound up. Consequently, winding up petitions can have a significant impact on employees’ rights.

Employee Claims

If your company is going into liquidation in the United Kingdom, you may be wondering what will happen to your employee claims. The good news is that the government has put protections in place to ensure that employees are treated fairly in these situations. First and foremost, employees are entitled to be paid for any work that they have already completed. Secondly, workers are entitled to continue receiving certain benefits for a period of time after the company goes into liquidation.

Finally, the government has established a system for handling claims for unfair dismissal and other employment rights violations. This system ensures that employees have a chance to have their claims heard and potentially receive compensation. As a result, employees can rest assured that their rights will be protected if their company goes into liquidation.

The National Insurance Fund (NIF)

The National Insurance Fund (NIF) is a UK government fund that provides financial assistance to people who are unable to work due to illness, injury, or unemployment. The fund is financed by a payroll tax that is collected from employers and employees. NIF benefits include sick pay, maternity pay, and unemployment benefits.

In addition, the fund provides money for the National Health Service (NHS) and for social welfare programs such as pensions and disability benefits. The NIF is one of the largest sources of funding for the UK government’s social welfare programs. In 2015/16, the NIF had a total budget of £100 billion. This made it the second largest source of government funding after taxation. The NIF is an important part of the UK’s social safety net, and it helps to ensure that people who are unable to work can still live with dignity and security.

Read more: Wages not paid on time?


Issuing a winding up petition is not typically an option for employees seeking to recover unpaid wages. This legal action is usually reserved for creditors of a company, rather than employees. Instead, employees who are owed unpaid wages may need to pursue other legal avenues, such as making a claim to an employment tribunal or seeking legal action through the small claims court.

However, in cases where the employer is insolvent and the employee is owed wages, they may be able to make a claim through the National Insurance Fund or the Redundancy Payments Service. It is important for employees to seek legal advice and ensure they have evidence of the unpaid wages before taking any legal action. Ultimately, the winding up petition process is not a viable option for employees seeking to recover unpaid wages.

Steve Jones Profile
Insolvency & Restructuring Expert at Business Insolvency Helpline

With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.