Advice Please - In Redundancy Limbo

Incognitos

I am looking for some advice please.

On Thursday 23 June, myself and the whole of my company were told that we were to be made redundant and that we would not receive our outstanding monthly pay. The majority of people were sent straight home with no notice and some workers (myself included) were asked to stay behind to help administrators when they are appointed.

I came into work on Friday and we were told they would be appointed today (Mon 27 June), we already know who they are going to be as they have contacted me already. Well it is now Monday afternoon and they still haven't been appointed, we were told it may be another 48-72 hours until they are.

We have also now been told that we aren't actually redundant, but under the threat of redundancy and that if we leave we will effectively be leaving of our own free will and lose our rights to any redundancy pay and pay in lieu of notice etc. So I feel like I am in limbo in at the moment.

The bigger picture is that there is a large multi million dollar company that owns the company that I work for and then 4 seperate trading companies. 2 of these companies were making money and 2 were losing money and in huge debt. The 2 that were making money are to trade again under a new name and the other 2 will basically be insolvent. So basically the whole of the workforce (1300 employed and 1500 self employed) have been sacrificed to enable the companies to re-trade debt free. I am not mentioning any company names here for obvious reasons. I don't know if this entirely legal and perhaps this is the reason why the whole administration thing has been held up.

I just know that myself and the other 40-50 people that continue to come to work each day not knowing if we will get paid at all, are obviously very frustrated and worried as whilst "they" are stalling we have mortgages and bills etc that have to be paid. We had been told unofficially last week that we would "most likely" receive our outstanding monthly payment and a wage per week from the administrators if we stayed, but now it feels like we are being blackmailed as if we don't stay we will receive no redundancy.

Any advice would be greatly appreciated, as we have contacted ACAS etc, but we really need specific advice for this situation.

Incognitos

Another couple of points are that the new company will have the same chief execs and also that the intended administrators are in the building already and asking questions, but I have not divulged any information as yet until we all receive confirmation of payments and redundancy from them in writing.

SarEl

I am afraid that the company are acting entirely lawfully - no morals maybe, but the law isn't interested in their morals. You have not been told that you are redundant, and therefore if you leave you will be treated as resigning. There is no "information to divuge" - the management of a company in administration are not prevented from setting up another company and managing that. I am afraid my best advice would be to ask the administrators about your payments owed and wages, and otherwise keep your head down and don't get involved in company matters. The only fall out of anything you might say will be on you - some companies do this sort of thing all the time, and US companies are renowned for it.

dorme

Incognitos wrote: »

I am looking for some advice please.

On Thursday 23 June, myself and the whole of my company were told that we were to be made redundant and that we would not receive our outstanding monthly pay. The majority of people were sent straight home with no notice and some workers (myself included) were asked to stay behind to help administrators when they are appointed.

I came into work on Friday and we were told they would be appointed today (Mon 27 June), we already know who they are going to be as they have contacted me already. Well it is now Monday afternoon and they still haven't been appointed, we were told it may be another 48-72 hours until they are.

We have also now been told that we aren't actually redundant, but under the threat of redundancy and that if we leave we will effectively be leaving of our own free will and lose our rights to any redundancy pay and pay in lieu of notice etc. So I feel like I am in limbo in at the moment.

The bigger picture is that there is a large multi million dollar company that owns the company that I work for and then 4 seperate trading companies. 2 of these companies were making money and 2 were losing money and in huge debt. The 2 that were making money are to trade again under a new name and the other 2 will basically be insolvent. So basically the whole of the workforce (1300 employed and 1500 self employed) have been sacrificed to enable the companies to re-trade debt free. I am not mentioning any company names here for obvious reasons. I don't know if this entirely legal and perhaps this is the reason why the whole administration thing has been held up.

I just know that myself and the other 40-50 people that continue to come to work each day not knowing if we will get paid at all, are obviously very frustrated and worried as whilst "they" are stalling we have mortgages and bills etc that have to be paid. We had been told unofficially last week that we would "most likely" receive our outstanding monthly payment and a wage per week from the administrators if we stayed, but now it feels like we are being blackmailed as if we don't stay we will receive no redundancy.

Any advice would be greatly appreciated, as we have contacted ACAS etc, but we really need specific advice for this situation.

aaah, my girlfriend was one of the few who got sent home from this company.

I assume there still hasnt been administrators appointed? she hasnt received any formal notification or any news since last thursday when she was told to go.

If i was you guys, i definatly wouldnt rest on my laurels, if they are in this much of a tricky situation, then you could all get the same treatment. Also, if i was in all of your positions, i wouldnt be working there if i wasnt getting paid?! if you all left en-mass with the proviso that you will return when you are paid for the months work you completed, im sure they would be a bit more eager to get moving!

you are all still alot more lucky than my girlfriend, spare a thought for those sat at home with no communication, no money and no job.

Incognitos

dorme wrote: »

aaah, my girlfriend was one of the few who got sent home from this company.

I assume there still hasnt been administrators appointed? she hasnt received any formal notification or any news since last thursday when she was told to go.

If i was you guys, i definatly wouldnt rest on my laurels, if they are in this much of a tricky situation, then you could all get the same treatment. Also, if i was in all of your positions, i wouldnt be working there if i wasnt getting paid?! if you all left en-mass with the proviso that you will return when you are paid for the months work you completed, im sure they would be a bit more eager to get moving!

you are all still alot more lucky than my girlfriend, spare a thought for those sat at home with no communication, no money and no job.

Hi there, administrators still not officially appointed yet, it's apparently likely to be Thursday/Friday of this week. The redundancy date will be Thurs 23rd June though. Something is going on behind the scenes holding it all up I think.

The problem with us leaving is we would effectively be quitting, which means no redundancy pay. So we have no option but to show our faces and twiddle our thumbs each day until they are appointed. As for us being luckier, not from where I'm sitting. We have no money either no matter what rumours are flying around, difference is we still need to spend on fuel and travelling costs each day and if we take a job now we lose our redundancy. We have no special deal regarding an earlier payment, were just as skint as the rest.

I think the letters will start to go out next week, the administrators are poised ready to start. I understand about the no communication, it's as frustrating for us sat in there. I have no problem telling you when the letters are going out, if I find out. Also an administrator said they've never known it to drag out like this before, it seems this is an unusual case.

dorme

Incognitos wrote: »

Hi there, administrators still not officially appointed yet, it's apparently likely to be Thursday/Friday of this week. The redundancy date will be Thurs 23rd June though. Something is going on behind the scenes holding it all up I think.

The problem with us leaving is we would effectively be quitting, which means no redundancy pay. So we have no option but to show our faces and twiddle our thumbs each day until they are appointed. As for us being luckier, not from where I'm sitting. We have no money either no matter what rumours are flying around, difference is we still need to spend on fuel and travelling costs each day and if we take a job now we lose our redundancy. We have no special deal regarding an earlier payment, were just as skint as the rest.

I think the letters will start to go out next week, the administrators are poised ready to start. I understand about the no communication, it's as frustrating for us sat in there. I have no problem telling you when the letters are going out, if I find out. Also an administrator said they've never known it to drag out like this before, it seems this is an unusual case.

Yeah your right about the fact you have to drive in still, it must really be testing you guys now.

Has there been ANY indication that there definatly be some sort of letters sent out very soon? i wonder also if they even if the money to pay your monthly wages and/r redundancy pay or will you all have to claim it from the govs insolvancy service?

It wouldnt suprise me if the hold up is the directors draining the remaining funds for themselves before the administrators move in, as i hear the other "kitchens ******" company went under yesterday also!

really is bad times for the former group.

isplumm

Incognitos wrote: »

and if we take a job now we lose our redundancy. .

Hi,

If it was me I would be looking for a new job & if found grab it .... redundancy will not be that much ...

Mark

dorme

isplumm wrote: »

Hi,

If it was me I would be looking for a new job & if found grab it .... redundancy will not be that much ...

Mark

very good point, the redundancy payment will be a max of £400 a week for every year youve worked.

so if youve only been there a few years, your likely to barely get a months wage!

QOTD

Incognitos wrote: »

I think the letters will start to go out next week, the administrators are poised ready to start. I understand about the no communication, it's as frustrating for us sat in there. I have no problem telling you when the letters are going out, if I find out. Also an administrator said they've never known it to drag out like this before, it seems this is an unusual case.

Yes - if you can let us know when the administrators are officially appointed that would be fantastic. I know that the letter is going to come through the door but it would just be good to have an idea when so I can poise myself and get ready to run down to the local council offices, etc to hand in completed forms.

Dorme - I found out this morning that one of the executive directors who was trying to save the companies was also sent home this morning and since all bank accounts have been frozen I think it's highly unlikely that they are draining any remaining funds

Incognitos

dorme wrote: »

Yeah your right about the fact you have to drive in still, it must really be testing you guys now.

Has there been ANY indication that there definatly be some sort of letters sent out very soon? i wonder also if they even if the money to pay your monthly wages and/r redundancy pay or will you all have to claim it from the govs insolvancy service?

It wouldnt suprise me if the hold up is the directors draining the remaining funds for themselves before the administrators move in, as i hear the other "kitchens ******" company went under yesterday also!

really is bad times for the former group.

We have to take the chance that the administrators will have enough money to pay our wages, which won't be yet no matter what rumours are flying around and I know that they are. All of the bank accounts have been frozen and when they aren't the administrators will have charge, so there's no chance for any money to be drained.

We have had no contact from the administrators today, we continue to sit waiting doing nothing basically. I couldn't honestly say when letters will go out, just repeat what we were told yesterday. We should be in administration Thursday/Friday, but nobody can guarantee that, then the letters would go out. It could even be later than next week if this drags on. I just wish that things would get moving then we can all get on with our lives.

Incognitos

isplumm wrote: »

Hi,

If it was me I would be looking for a new job & if found grab it .... redundancy will not be that much ...

Mark

Redundancy will be enough to make a difference for me, I can't afford to let it go and I will need it to live on basically whilst I'm looking for another job.