Working for the Administrator

credit-card-tart

We have been told today by our employer the company may go into administration this week. They also said if that happened then all of August’s pay will have to be claimed via the government at a max of £430 per week (less tax and NI).

If we were asked by the administrators to carry on working for them to run the skeleton company, would this paid at normal rates as per our contracts (including the whole of August), or at the max rate of £430 per week?

CKhalvashi

credit-card-tart wrote: »

We have been told today by our employer the company may gointo administration this week. They also said if that happened then all ofAugust’s pay will have to be claimed via the government at a max of £430 perweek (less tax and NI).

If we were asked by the administrators to carry on workingfor them to run the skeleton company, would this paid at normal rates as perour contracts (including the whole of August), or at the max rate of £430 perweek?

I couldn't imagine that being the case; all of our good staff would very quickly walk out (especially as our non-managers are on £28k basic, and one managed to make hers last year to £274k, through bl0ody hard work!

£430/week is £10.50/hour. Depending on what industry you're in (with a quick look online), with over 5 years experience, it's perfectly achievable to make more than this in most circumstances.

Although the administrators would be brought in to look after the creditors, not the staff.

CK

antrobus

credit-card-tart wrote: »

....If we were asked by the administrators to carry on working for them to run the skeleton company, would this paid at normal rates as per our contracts (including the whole of August), or at the max rate of £430 perweek?

I will be paid at normal rates as per your contract. There are no restrictions on how much an administrator can pay someone.

YoungBusinessman

As CK says the administrator will be brought in to deal with the creditors, not the staff. Its mainly football teams they deal with staff/employees aswel as most have contracts and a value to the business.

CKhalvashi

YoungBusinessman wrote: »

As CK says the administrator will be brought in to deal with the creditors, not the staff. Its mainly football teams they deal with staff/employees aswel as most have contracts and a value to the business.

Something else that I've just thought of; are you going to be placed into new contract, if this is the case?

This would be main concern for me in this position, as it means your entitlement to redundancy pay could be affected, should buyer not come forward.

We merged last year with other company, and created separate entity, which has two companies running under it, so 'JSC 'X' Holdings (Europe)' (Georgian incorporated) holds ownership of ''Y' (International) Ltd' (UK Incorporated) and ''Z' S.L' (Spanish incorporated); a new entity on top was simply created, and the two former companies are still active on Companies House.

If you go from employment with 'A Ltd' to 'A (Asset Management) Ltd' (as example), then you're transferring employer unless strict guidelines are set.

CK

credit-card-tart

Thanks for the replies.

The administrators still haven't arrived and we were all told not to come into work today. So no one knows whats going on!