Into adminstration without warning, no pay

benzy

Hi,

this is a weird issue where I didn't know which forum I should put this in. redundancy or employment, anyway...

Last Friday we were told the company I worked for had done into administration and that between the 1st and the 15th no one in the company will receive payment as going into administration meant we were out of contract.

Two people from within the company took over the license to trade with help from an investor from the 16th and the previous owners have left, now we are working under a new name and our Contracts will be tuped across companies and our pay will be picked up from the 16th meaning a lost of pay for two weeks for everyone in the company.

The letter that we received on the 26th, the same day we were told, 10 days from the new company taking over and 26 days after we had dipped into administration, states when we went into administration our contracts were no longer valid and we were redundant.

No redundancy notice or pay, and everyone worked for a further two weeks with out pay and without being told we were not being paid...can this be legal, shouldn't the previous company be liable?!

we were advised to fill out a redundancy claim from Gov.co.uk which I did for the two weeks of no pay.

thanks for any advice.

.

sangie595

You cannot be both redundant and TUPEed at the same time. It is one or the other. This is a matter that the administrator should have addressed. Have you asked the question?

getmore4less

What's the case law on TUPE and employees liabilities?

sangie595

getmore4less wrote: »

What's the case law on TUPE and employees liabilities?

Around 400 volumes and counting. But the law on the basics of this is simple. You cannot TUPE and also be redundant. TUPE preserves your continuous employment, so you cannot be redundant. If you are redundant, then TUPE does not occur and your service starts afresh. But if the company was bought intact as described, then it would have to be TUPE.

getmore4less

But the key point is the liability for outstanding wages, holidays, expenses etc.

Typically these are paid by one side or the other in TUPE.

sangie595

getmore4less wrote: »

But the key point is the liability for outstanding wages, holidays, expenses etc.

Typically these are paid by one side or the other in TUPE.

Typically, yes, but not always. Which is why the administrator is the person who can answer the question, and should have. It is possible - and, in fact, is becoming more common, for a form of transfer that actually wipes out these sorts of debts. So the new employer doesn't inherit them. It's some form of special status arising from the restructuring by the administrator. I'd have to look up the details, as it isn't something I have ever dealt with directly because it is a private sector thing. But it would be helpful if the OP would come back and answer the question as to whether they have asked the question already.

But one thing is very clear - if there was a TUPE, which the OP says there was, they are not entitled to redundancy pay or notice from anyone. Which was part of their question. Holidays transfer as part of the TUPE terms - in a TUPE these are not affected. So the only question remaining would be who pays the missing wages (if anyone), and the answer to that would depend upon the information about the transfer that the administrator would have (and should have informed them about).

It would also be useful to know who the letter was from, because it is rubbish that going into administration terminates your contract. Many companies in administration continue to operate and they do not issue new contracts to do so.

zaax

Either your were TUPED or you were not. If you were and the new company made you redundant then you are entitled to redundancy pay from the new company under the old companies agreements. Talk to ACAS, if you're not in a union