Company in admin and not being paid

[Kilo78]

Hi Everyone,

 

Wondering if anyone in here might be able to give me advice on the following.

 

For several weeks it has become apparent that our company is in financial trouble and has now gone into administration.

 

We are being told that there is a chance the company may be saved - but some stores will probably close.

 

We are due to get paid tomorrow but this has been made clear that it will not happen.

 

We have also been told that stores that are saved will receive their pay. The stores that close will not receive anything and will have to claim statutory redundancy.

 

Could someone please confirm if this last part is correct. I am having difficulty with the fact that I may not be paid for the last 4 weeks work while the company continues under a new owner.

 

Finally, will I be jeapordising my statutory redundancy pay if I fail to turn up for work after tomorrow? Could I consider this a breach of contract by the company?

 

Thanks for taking the time to read all that!!

[Sidewinder]

Hi Everyone,

 

Wondering if anyone in here might be able to give me advice on the following.

 

For several weeks it has become apparent that our company is in financial trouble and has now gone into administration.

 

We are being told that there is a chance the company may be saved - but some stores will probably close.

 

We are due to get paid tomorrow but this has been made clear that it will not happen.

 

We have also been told that stores that are saved will receive their pay. The stores that close will not receive anything and will have to claim statutory redundancy.

 

Could someone please confirm if this last part is correct. I am having difficulty with the fact that I may not be paid for the last 4 weeks work while the company continues under a new owner.

 

Finally, will I be jeapordising my statutory redundancy pay if I fail to turn up for work after tomorrow? Could I consider this a breach of contract by the company?

 

Thanks for taking the time to read all that!!

 

I am by no means up to date with Insolvency law, but my understanding is that the Administrator should provide you with guidance as to how and when you might be paid should the business continue trading. Your wages, holiday pay and any redundancy due are guaranteed to be paid by the government in the event of the employer's insolvency so you will ultimately be paid, but I can understand your concern at not being paid immediately.

 

As to the final question, I believe that if you fail to attend work then you would jeopardise your redundancy entitlement as you yourself would be in breach of contract and could be deemed to have resigned. Whilst you could take action for the non-payment of wages, your employer has no money, so would most probably never receive anything, but by remaining in employment there are guarantees available which protect you.

 

Hopefully somebody with relevant experience may advise further.