What the F**k?

[michelle73]

I work for an extremely large company that has just gone into administration. Shouldn't give you the name but it was only yesterday, so I will. Carter & Carter is the company in question. We have been told that that we won't be paid from 1st March until 9th March as the comapny has no money, however from 10th March the administrators will pay our salary but they aren't sure when, we have also been told that our travelling expenses won't be honoured. Also we don't know when the administrators will pay us. If we walk, we have been advised that this will be take as our resignation. So in a nutshell, they expect us to keep working for potentially nothing. Surely this can't be lawful?

[ozzywizard]

Phone in sick due to stress caused by the current situation. . .

 

Sorry, the above is just what I would do, sorry for your position and I am sure somone will be along to advise you from a legal point of view soon.

[hanzo]

A company in administration basically has no money. You will be a preferential creditor in the administration and will rank towards the top of unsecured creditors. That means that any wages and holiday pay you are owed are paid by the administrator once the assets of the company are sold off and any loans like floating charges and mortgages are paid off, if there is anything left in the pot.

If there is no money left to pay you, the government runs a guarantee fund which pays you up to 8 weeks pay, capped at £310 per week (off the top of my head: may have gone up recently), and up to 6 weeks of holiday pay you are owed. Your rights if your employer is insolvent : Directgov - Employment

The administrator will try to sell the company as a going concern, and if they do, your employment will be protected by the TUPE regulations.