In the ACAS guide to redundancy I have found the following statement:

“If the employer has cash-flow problems so serious that making the redundancy payment would damage the business, arrangements can be made by BERR to pay the employee direct from the National Insurance Fund. The employer is expected to pay back the payment as soon as possible, if necessary in instalments. If the employer is insolvent, the payment is again made by BERR and the employer’s share recovered from the assets of the business.”

This is seperate to the rules relating to an insolvent employer.

Has anyone used this provision or heard of it in action?

Many thanks.
Quentin Colborn