What happens if company goes into administration?

gazza975526570 · 12 January 2009 at 10:49PM

Not for me but a question for a friend (no, really it is!)

He works for a large company and is entitled to about 14 months worth or redundancy pay. If the company goes into administration would he still get this or is it then just if the Company has enough money left or does it have to ringfence this money somewhere?

Thanks

indierocker85 · 12 January 2009 at 10:56PM

The redundancy would become a debt of the companies, which the company (or administrators) would remain responsible for paying. If not, as far as I know I think there is a backup government fund. But your friend wont get the full amount via the government.

gazza975526570 · 12 January 2009 at 10:57PM

indierocker85 wrote: »

The redundancy would become a debt of the companies, which the company (or administrators) would remain responsible for paying. If not, as far as I know I think there is a backup government fund. But your friend wont get the full amount via the government.

Thanks and pretty much as i thought. Does anyone know what the Government covers?

indierocker85 · 12 January 2009 at 11:15PM

If you go here you will find all the necessary info on redundancy payments for companies that have become insolvent or gone into administration. Should have all the info that you or your friend will need and also explains how to go about claiming if the company can't or don't pay you up. This goes for unpaid wages, redundancy, tribunal payouts etc etc.

Hope this helps.

gazza975526570 · 12 January 2009 at 11:17PM

Thanks again.

Doesnt seem to state how much the governments redundancy actually quates to unfortunately

indierocker85 · 12 January 2009 at 11:20PM

It does, it states that they will pay out owed money upto the equivalent of a maximum of £330 a week.

His entitlement is worked out against his age.

gazza975526570 · 12 January 2009 at 11:21PM

Found it:

http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858787&topicId=1079123792&r.l2=1073876974&furlname=redundancycalculator&furlparam=redundancycalculator&ref=&domain=www.businesslink.gov.uk

Not a lot is the answer i suspected!!!

What happens if company goes into administration?

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