Gone into administration today, help with redundancy!
Discussion
Hi all,
Yet another random post that's being opened up to the PH masses, but you seem like a knowledgeable lot so hopefully you can help.
The company I work for has gone into administration today with no notice, everybody could see it coming but there was no official notice given until today when the administrators came in.
We have not been given a great deal of information about how redundancy will work. I have worked here for a little over four years, I understand that I should be able to receive up to a maximum of £330 for every year worked in redundancy money, but have been told it could take up to 2 months to get hold of this money?! It has also been mentioned that because there was no notice given about the redundancy, then further money could potentially be claimed through a tribunal?
Anybody been through the same thing have any advice?
Cheers
Yet another random post that's being opened up to the PH masses, but you seem like a knowledgeable lot so hopefully you can help.
The company I work for has gone into administration today with no notice, everybody could see it coming but there was no official notice given until today when the administrators came in.
We have not been given a great deal of information about how redundancy will work. I have worked here for a little over four years, I understand that I should be able to receive up to a maximum of £330 for every year worked in redundancy money, but have been told it could take up to 2 months to get hold of this money?! It has also been mentioned that because there was no notice given about the redundancy, then further money could potentially be claimed through a tribunal?
Anybody been through the same thing have any advice?
Cheers
I may be wrong but won't you become one of the creditors and the administrators will just tell you to wait in the queue. If there's anything left after administrators fee, HMRC etc then you claim your redundancy.
In the meantime i would try and find something else and see what the administrators say.
In the meantime i would try and find something else and see what the administrators say.
mi1ne said:
sorry to hear about that, rubbish news.
I thought that you get a weeks wage for every year you have worked there.
could be wrong though
Unfortunately not - it's a weeks statutory redundancy pay per year of working there which is about £330.I thought that you get a weeks wage for every year you have worked there.
could be wrong though
He should be entitled to his notice period to be paid too
Good luck
Tricky one this - liklihood is that you will need to claim your money from the NI fund. The amount will increase from Feb to £350 per week and depending on your age you'll get between 2 and 6 weeks at that rate. This is stat redundancy and is tax free.
For holiday pay accrued and notice pay you may have to join the list of creditors if they pull the shutters down but in all likelihood they will consult with you (usually 30 days consultation)and if appropriate issue notice of termination following consultation and have you work the notice period anyway.
They can't force you to take holiday and you continue to accrue holiday through your notice period so they should pay that subject to the usual deductions for tax and NI in your last wages.
This is assuming of course that they are reasonable - I've seen administrators before that finish people out with no notice and risk the tribunal finding only for failure to consult which is a minimal award, because realistically the tribunal knows they can't pay a full award out. Tis can of course back fire on them but some see the risk worthwhile.
Whatever the case I hope you get sorted soon and as a previous poster said - they haven't actually announced yet so they may find a buyer...
All the best
DC
For holiday pay accrued and notice pay you may have to join the list of creditors if they pull the shutters down but in all likelihood they will consult with you (usually 30 days consultation)and if appropriate issue notice of termination following consultation and have you work the notice period anyway.
They can't force you to take holiday and you continue to accrue holiday through your notice period so they should pay that subject to the usual deductions for tax and NI in your last wages.
This is assuming of course that they are reasonable - I've seen administrators before that finish people out with no notice and risk the tribunal finding only for failure to consult which is a minimal award, because realistically the tribunal knows they can't pay a full award out. Tis can of course back fire on them but some see the risk worthwhile.
Whatever the case I hope you get sorted soon and as a previous poster said - they haven't actually announced yet so they may find a buyer...
All the best
DC
Sorry to hear that. Having been involved in the same recently my understanding is this . . .
1. You get £330 for each year you've worked, as long as it's more than 2 years.
2. You also get your notice peiod paid at a rate of £330 per week. However, this is reduced by anything you earn in that time. Say your notice period is 6 weeks you're entitled to £1,980 from the government. Say you get a job paying £1,000 per week after 5 weeks, the amount the government pay you will reduce to £980.
3. Any holiday you have accrued and not taken is also payable at a rate of £330 per week.
4. Until you are actually notified that you're redundant by the adminstrator you effectiely work or them. Your terms, conditions and benefits still apply. The key thing is your holiday still accrues. if you get 25 days per year this is approx 0.5 days per week.
Clearly the administrator will require help in shutting the business down or selling it off so they still might need you for a period of time.
1. You get £330 for each year you've worked, as long as it's more than 2 years.
2. You also get your notice peiod paid at a rate of £330 per week. However, this is reduced by anything you earn in that time. Say your notice period is 6 weeks you're entitled to £1,980 from the government. Say you get a job paying £1,000 per week after 5 weeks, the amount the government pay you will reduce to £980.
3. Any holiday you have accrued and not taken is also payable at a rate of £330 per week.
4. Until you are actually notified that you're redundant by the adminstrator you effectiely work or them. Your terms, conditions and benefits still apply. The key thing is your holiday still accrues. if you get 25 days per year this is approx 0.5 days per week.
Clearly the administrator will require help in shutting the business down or selling it off so they still might need you for a period of time.
Thanks for the replies people.
Bit more info, it was only announced today and a very large percentage of the people have actually gone today and were told not to return. I have been told to come in for the next couple of days to see if there are any ends that need tieing up. Unfortunately the administrators have also said they hold no hope of selling any part of the business in the current climate.
Bit more info, it was only announced today and a very large percentage of the people have actually gone today and were told not to return. I have been told to come in for the next couple of days to see if there are any ends that need tieing up. Unfortunately the administrators have also said they hold no hope of selling any part of the business in the current climate.
Sorry - been very busy lately so not had much time to post but I've got here in the end.
Bren - the Administrators should issue you with something called an RP1 form as soon as they have notified you of the redundancy and the insolvency of the Company if there is no prospect of the Company being sold.
You have to fill this form in and submit it to the Redundancy Payments Office. They will deal with your claims and provide you with any money that is owed to you up to the statutory limit of £330 per week. The RPO then effectively "stands in your shoes" and waits in line for any money from the Administrators so that you don't have to.
As for any industrial tribunal action - its very hard to comment on that and you would need to take further advice. So many people go to the tribunals now to claim unfair dismissal following redundancy and it really is best to get some legal advice before going down this route. Find an employment solicitor who will provide an initial consultation free (everyone is technically entitled to one hours free legal advice anyway which is something solicitors keep quiet) and see what they say about whether you have a worthwhile case.
If you have any concerns or queries then drop me a PM and I'll be happy to help.
Also just worth noting - if the Administrators do not provide you with formal notice of your redundancy within 14 days from the date of their appointment then they automatically adopt your employment contract!!!
HTH
Bren - the Administrators should issue you with something called an RP1 form as soon as they have notified you of the redundancy and the insolvency of the Company if there is no prospect of the Company being sold.
You have to fill this form in and submit it to the Redundancy Payments Office. They will deal with your claims and provide you with any money that is owed to you up to the statutory limit of £330 per week. The RPO then effectively "stands in your shoes" and waits in line for any money from the Administrators so that you don't have to.
As for any industrial tribunal action - its very hard to comment on that and you would need to take further advice. So many people go to the tribunals now to claim unfair dismissal following redundancy and it really is best to get some legal advice before going down this route. Find an employment solicitor who will provide an initial consultation free (everyone is technically entitled to one hours free legal advice anyway which is something solicitors keep quiet) and see what they say about whether you have a worthwhile case.
If you have any concerns or queries then drop me a PM and I'll be happy to help.
Also just worth noting - if the Administrators do not provide you with formal notice of your redundancy within 14 days from the date of their appointment then they automatically adopt your employment contract!!!
HTH
Glosphil said:
The upper statutory limit of £330 per week for each complete year worked is multiplied by 1.5 if you are 45 or over.
But it is also in conjunction with a specific length of service - off the top of my head after a long day I can't actually remember the amount but I'll look it up tomorrow at work and confirm.MikeyT said:
Depends on your age though I think how much you get - more weeks the older you are, from memory. Over 40 and you get a lot more than if you're 20
I have never heard this before.I'm sure there is something fixed about having worked in a place for 2 years as when I was made redundant previously, I was one week away from that and had to leave with absoloutely no notice or redundancy payment. There was nothing connected with age.
mickken said:
oobster said:
Have the administrators/management said you will be made redundant though?
Perhaps the administrators may be able to restructure or sell the business and you'll be kept on?
There's no money in that. Once the administrators are in.....in 99.999% of cases, it's game over.Perhaps the administrators may be able to restructure or sell the business and you'll be kept on?
siscar said:
mickken said:
oobster said:
Have the administrators/management said you will be made redundant though?
Perhaps the administrators may be able to restructure or sell the business and you'll be kept on?
There's no money in that. Once the administrators are in.....in 99.999% of cases, it's game over.Perhaps the administrators may be able to restructure or sell the business and you'll be kept on?
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