advice needed not sure what to do next

sugarpuff123

I've had a strange & confusing meeting today at work & I assume that I'm headed for redundancy but I've never been in this situation before so I must admit I'm clueless bout the process. I was told that the company was going into administration but a new company has been set up & my contract would be transfered to the new company to protect my rights. Next I got the impression that there was no job for me any longer as I was also told that they wanted to scale back the overheads of the new company & then they woffled on about notice periods & payments but no one actually said the word "redundancy", I got told to take time off to digest the news and come back with any questions. I walked away with my head spinning & not understanding what I was expected to do next. I was advised my friends to asked about written confirmation of redundancy which I did but I was told I was "at risk" and in "Consultation period" - what on earth is going on? Can anyone throw any light on the situation or what I might expect next or what I should do next to protect myself?

happywarmgun

I'm sure other will give you better advice but if I understand your story correctly:

- Your employer is in serious trouble and has gone into administration. In laymans terms this means that the company is on a course where (without something drastic) it will be bust in a very short time so an outside company (the 'administrators') have been called in to take-over and either find a way to either make the company viable again (possible but unusual) or to wind the company up in a way that causes the least pain to those with an interest - creditors, investers and staff. In many of these cases the 'least pain' can still be an awful lot of pain.
- The first thing the administrators will do is to try and get a handle on cashflow and put a plug in it. Payroll costs (people's salaries) are a huge part of that. The adminstrators will be looking at everyone on the payroll and will be trying to get everyone who is not essential off the books quickly. What is deemed 'essential' will depend if they still think there is a chance of saving the company or not. If they think not it could be everyone.
- By the nature of being 'in administration' the company has not yet actually gone bust and the administrators will still go through the normal legal process for redundancies. The setting up of a 'new company' is probably just a device to make sure that there is an active bank account (in the new company's name) which can make payments (like your wages and possibly your redundancy money if it comes to that) if the original company is unable at present to make bank payments.
- The start of the process to review staffing ahead of leeting people go is a 'consultation period' - from memory this is usually about 30 days. You (or some representative colleagues depending on the numbers invovled) will be invited to a number of meetings over the coming weeks so that you can undertand the thought processes behind the changes the administrators are making to staffing (e.g. whether they are letting everyone go, or some people go) and so that it is transparent that if only a group of people go, then that group of people is selected on a fair and resonable basis.
- From what you have said it does sound a bad situation, and you should honestly start planning now for what you will do if you are redundant.
- That said, it is not automatic that you will lose your job - that depends on the talents of the administrators and the outcome of the consultation process - you should treat this seriously, and make sure you take full notes and if possible a trade union rep with you if you are attending. If they want representatives from your colleagues make sure you send the most switched on people and make sure they document everthing fully. If I was in the situation, being a believer in looking after myself, I would volunteer if asked to be a rep.
- Read this forum,. There are lots of tips about the conultation process, about your rights for payment in lieu of notice, and statutory redundancy pay. If you are leaving you should expect to recieve these.
- GOOD LUCK. It is a stressful time, but do remember that the majority of people who are made redundant when asked five years later agree that 'it all turned out for the best'. It is just hard to believe that when you are in the middle of it.

SomeBozo

Great advice from happywarmgun, could not have put it better myself.

Bozo

sugarpuff123

Thanks for the advice it was very helpful & has given me a greater understanding of procedures which my employer failed to explain. I got a letter today saying I face redundancy & the next step is a scheduled meeting - so guess the worst is coming after all

getmore4less

Consultation is a 2 way process.

You have a chance to question the descision, why were you chosen, what jobs are left and if some of those are part of what you did eg. if there were 6 jobs and now only 4 why you have not be chosen for one those.

Often the initial consultations by administators or new owners will have been done with people that often are looking out for themselves.

So it also a chance to highlight why it would be good for the company to keep you and make a good impression. Does not always work but worth a try.

sugarpuff123

Once again helpful advice & I shall give it my best shot I have nothing to loose but at the end of the day I think the odds are slim to none as its a small company 4 people in the office which includes me but 2 of those people are the owners of the business.