When a company enters Creditors Voluntary Liquidation, employees are typically made redundant. They are entitled to claim statutory redundancy payments, outstanding wages, holiday pay, and notice pay through the Department of Social Protection’s Insolvency Payments Scheme if the company cannot fund these directly. The liquidator will notify employees of their rights and the claims process. Employees rank as preferential creditors for certain amounts, meaning they are paid ahead of unsecured creditors from available assets. It is important that employees act promptly and submit their claims as soon as the liquidation begins.
