Employer done into administration on payday

head_above_water

It is pay day today and I have just received an email to inform me the company has gone into administration so won't get salary or £900 of expenses. Does any one know what happens next and what should I do about my direct debits, including mortgage which will go out on Monday. I have redundancy insurance but don't think this will be relevant.

andygb

The first thing I would do, is to contact my bank/building society ASAP, because you really DO NOT want returned direct debits or mortgage payments, it will be even more costly in the long run.
I would suggest citizens advice, but I have found them less than useless on a couple of previous occasions.
See if you can get some free legal advice, and it would be good if you belonged to a union (though I suspect that this is not the case).
I wish you the very best of luck, because this happened to me about ten years ago, but we did not get any warning (the boss simply did not turn up to work, and the bank would not process the salaries), and loads of people ended up in financial difficulties, mainly because their banks would not show any leniancy.

Two4Tuesday

The administrators should be in touch with you and will send you forms to claim outstanding wages and redundancy money from the Redundancy Payments Service.

It may take a while to be processed, and is capped to something like £430 per week, but it's better than nothing.

makeyourdaddyproud

The firm chose a payday to go bankrupt, and not any time since the last payday? Can any employer be trusted nowadays?

AP007

makeyourdaddyproud wrote: »

The firm chose a payday to go bankrupt, and not any time since the last payday? Can any employer be trusted nowadays?

To think also they must have sent the payroll to the bank a few days before...........oh no they haven't

andygb

Very often the employers will use this chance to shut up shop, forget the staff and set up business elsewhere.
We live in difficult times - at least we do, the honest, hard working folk.

Dangermac

makeyourdaddyproud wrote: »

The firm chose a payday to go bankrupt, and not any time since the last payday? Can any employer be trusted nowadays?

Bit unfair, dont you think.

Good and bad in any walk of life, whether that is people, employers, politicians etc etc

And there is no evidence that this particular case was manufactured to fall on a certain date

DM

head_above_water

Thanks for you replies, it was totally unexpected as I had received my payslip the day before. this isn't a small company, its a large firm with 800 people affected. I hope I can make a claim through the administrators , I also have £900 of expenses owed to me as we are paid a month in arrears, they pay my fuel etc at 40p a mile.
They are now looking for a buyer, so not sure what will happen next.

AP007

Dangermac wrote: »

Bit unfair, dont you think.

Good and bad in any walk of life, whether that is people, employers, politicians etc etc

And there is no evidence that this particular case was manufactured to fall on a certain date

DM

But the payroll would have been sent to the bank long before the day of pay so if it hasn't been paid then I would say they did chose pay day to announce it.

agrinnall

Unfortunately I suspect that the expenses, because they do not form part of your pay, will be simply another company debt and you will be treated the same as other creditors - you might eventually get it all if the company has enough assets to cover all debts, but it's more likely that you'll either get a proportion of it or at worst nothing if all the assets have gone to pay the priority debts such as wages.

david39

Your best hope is that a buyer for the firm can be found quickly and that they take on the existing staff.
If this happens, it is likely they will recompense the staff for lost wages, having reflected this cost in their offer price for the purchase - they would need to keep the goodwill of the employees during the takeover period.
As the expenses part of your shortfall is an individual issue and unlikely to apply to the majority of the staff, this would be a separate issue. You will need to make a claim with the administrators for this.