Administration query

Manty

Hi all, I'm new at this, tried searching for posts for similar circumstances but haven't found any.

The company I work for has recently announced it is going into administration, and I am keen to start looking for jobs - but they haven't made any further announcements yet until next week. There is talk of them wanting to keep key personnel back to work with the administrators and I might possibly be kept back.

I won't know the full details until next week but I have a few queries that I hope someone here can help me with:

1. If I am asked to stay back I understand I would be working for the administrators - however I desperately want to apply for new jobs and this would hinder me - is it optional to stay back or would I be required to if they ask?

2. I also have unemployment insurance which I took out last year and I would naturally want to register at the job centre to activate the policy - if I have to stay behind what happens at the end of the administration project? Would I still be classed as redundant or is it considered the end of a short employment contract period (in which case my policy would probably not pay out for reaching unemployment at the end of a set contract period) ?

3. As far as I understand it, I will be entitled to the statutory redundancy from the NI fund effective immediately from the date the administrators take over - will I be able to claim from the statutory fund straight away, even if I am kept on?

Many thanks for any advice you can provide.

anamenottaken

Manty wrote: »

The company I work for has recently announced it is going into administration, . . .. There is talk of them wanting to keep key personnel back to work with the administrators and I might possibly be kept back.

I won't know the full details until next week but I have a few queries that I hope someone here can help me with:

1. If I am asked to stay back I understand I would be working for the administrators - however I desperately want to apply for new jobs and this would hinder me - is it optional to stay back or would I be required to if they ask? The idea is that everything possible should be done to avoid redundancy. If you would be performing the same duties, how would refusing to carry on help prevent your being redundant?

2. I also have unemployment insurance which I took out last year and I would naturally want to register at the job centre to activate the policy - if I have to stay behind what happens at the end of the administration project? Would I still be classed as redundant or is it considered the end of a short employment contract period (in which case my policy would probably not pay out for reaching unemployment at the end of a set contract period) ? The administrators would be likely to be trying to sell the busines and staff would then be subject to TUPE. I do not believe you could be redundant whilst still working in the same business.

3. As far as I understand it, I will be entitled to the statutory redundancy from the NI fund effective immediately from the date the administrators take over - will I be able to claim from the statutory fund straight away, even if I am kept on? But you are still employed. Can you say where you learned that you would be eligible for redundancy pay if you were still working in the same job?

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Manty

This is the thing - the way I see it, if transferring to the administrators - then my old job is no more is it not?

I wouldn't be performing the same duties if I was only there to assist the administrators in doing their duties, e.g. showing them where assets were, etc... I guess it depends on what the administrators want to do with the company.

I'm sure by definition my role is no more, and thus my role is redundant ?

anamenottaken

Is it appropriate alternative work? Sounds like it to me. Better to stick with it and find out whether you have another job. Statutory redundancy pay won't amount to much. Working for the Administrators wouldn't prevent your claiming redundancy or TUPE in due course.

Manty

I see, that was my main concern - if I was kept on, say for example, to wind up the company - would I effectively be redundant at the end of that process (give I would be working for administrators)?

It sounds like I would still be entitled. I don't know if I will be kept on yet, and have no idea what they are planning but may find out tomorrow or Tues so we'll see what happens.

My entitlement would amount to over £4500 which would be enough to tide me over for a few months.

Thanks for the response.