Company in administration & possibility of restarting as new co, (phoenix)

[glenh]

My employers bank called in the administrators on Thursday, when we were told that our salaries would not be paid due to lack of funds. I know the procedure for claiming this back, but on Friday I was offered, and accepted a new job with a new employer (not related to the first). I am now hearing that my first employer is trying to start up a new company and retain the services of some of his former employees. If this happens, I believe they lose their reight to redundancy. Is this also the case for me, as I have already found a new job & signed a contract or will I still be entitled to redundancy?

[paulgmb]

My understanding is that you have been made redundant by way of the company going into administration so unless the receivers are continuing to pay your salary and you are still at work you should be entitled to redundancy payments.
I would seek further advice on this either from your Union if you are a member or from the CAB or ACAS.
You should ensure you are in contact with the receiver and registered as a creditor regarding your salary and I believe the DTI pick up the tab for redundancy payments.
Your colleagues would as I understand be working for a new employer so would not lose their entitlement to redundancy payments as they have not transferred from one employer to another. Your former employer is probably useing this as a carrot nd a stick to try and retain your skills. Do they really want to carry on working for someone who has done the dirty on them?
My condition would be that he stumps up the monies he owes them!
Regards,
Paul.

[Conniff]

Paul has it spot on there. In a couple of years he will probably do the exact thing again. There are a string of these type who get funds in and then pull the plug only to start up again and continue the cycle.

[tiglet]

Been there, done that - Paul and Coniff are absolutely right - I would cut my losses, start with my new employer and await my redundancy payment, if I was you.