Company close to administration

Such_as_life....

The place I work, is due to go into administration, we have all been told not to go into work, the company has ceased trading already. But as yet we aren't in administration. We are told this is happening on Tuesday. All the workforce are uncertain that anybody will get paid on payday next week for the last months work, a lot of staff have holidays accrued too. Should we by law of already of been given notice and given garden leave, Can they do this?

No information has been sent out to any staff about how to claim redundancy pay, no notice of what was potentially happening, we have all had to find out through newspapers and customer speculation. Even being told to lie to customers to cover up the reality of what was happening whilst being kept in the dark, and told everything was Under control and our jobs were safe. What can be done.

marlot

Sorry to hear your news.

There is a Government scheme which will pay out statutory redundancy etc. I've not been through that, but I'm sure someone who has will come along shortly

p00hsticks

Like marlot, I'm not an expert but didn't want to just ignore you.

Unfortunately I think you'll probably have to wait until the administrators take over on Tuesday to find out what's happening. As marlot says, there's a government scheme that will meet the statutory redundancy payments for companies going into administration, and I believe that there are also schemes to cover outstanding salary and holiday pay and pensions too, although I'm not sure. The administrators wil lbe able to advise when they take over - hopefully one of the first things they will do is let the employees know what their intentions are.

There's also the possibility that not all of you will be made redundant just yet - it may be that the admistrator will want at least some of you to stay on to help them sort the company out.

Such_as_life....

Thank you to both of you.

ian103

This happened to me with my last employer - the Insolvency Service paid monies due but at a capped rate (pay / notice) and I believe those entitled to redundancy also got same from the IS but again capped. It took 6-8 weeks for the monies to come through from memory. It wasn't everything I was due but at least it was something. The firm I worked for went into Administration just before payday as the Bank wouldn't authorise the payroll [stupid really as we we due significant payments a week later from clients (and it was a bank owned by us taxpayers)]

More importantly, as you need to look forwards, good luck in finding a new job in the near future.

Such_as_life....

At least I know that myself and my staff will get what's owed, just a very long winded process. I there anyway you can start the process earlier or do I have to wait till I have the paperwork to come from the administrators??

Thankfully I have got another job lined up, just the rest of my colleagues I feel for, who have nothing.

ian103

You don't necessarilly get everything thats owed, in 2012 it was capped at £430/week. I got wages owed (I had no holiday entitlement due) and notice pay. Both capped, but at least it was something.

My form came from the Administrator very quickly after appointment (matter of days and I live remote from where the business was based) [I think if staff attended the meeting they were given the forms there and then], I posted the form back and it was then verified and processed.

I checked the company went into Administration in Mid May and I got my money very early July so quite quick but a major problem if you have bills to pay etc.

Such_as_life....

Hopefully I'll get the paperwork soon, panic has started to set in now with paying bills. I have heard that in cases where this happend before in other business, the workforce have taken items from offices, monies on the business premises. To help cover the costs of what they have lost out on. What would happen in that instance.

Catherine_Johnson_2

Such_as_life.... wrote: »

Hopefully I'll get the paperwork soon, panic has started to set in now with paying bills. I have heard that in cases where this happend before in other business, the workforce have taken items from offices, monies on the business premises. To help cover the costs of what they have lost out on. What would happen in that instance.

Err, you'd be charged with theft.

Anyway, a company going into Administration is different to it being liquidated. Going into Administration means they will try and keep the company running, at least in some form. Liquidation means it's closing down immediately.

CKhalvashi

Catherine_Johnson wrote: »

Err, you'd be charged with theft.

Anyway, a company going into Administration is different to it being liquidated. Going into Administration means they will try and keep the company running, at least in some form. Liquidation means it's closing down immediately.

This is the important part.

Jobs probably will go, however we've bought 5 companies from administration in the last 3 years, and I'd say that nearly everything viable in our industry has been snapped up by someone.

CK

Dr_Cuckoo3

Such_as_life.... wrote: »

I have heard that in cases where this happend before in other business, the workforce have taken items from offices, monies on the business premises. To help cover the costs of what they have lost out on. What would happen in that instance.

I remember such a case

http://news.bbc.co.uk/1/hi/england/manchester/2952194.stm



I don't think anyone was prosecuted

I doubt that a defunct company would be around for the trial at court as a witness