Company gone in to administration. What now ?

A question about : Company gone in to administration. What now ?

Hi there
I just found out yesterday (of all days !) that the company that I work for (a very well known courier company) has gone in to administration. So I'm preparing to be told I'll be made redundant. I got an email today from the chief exec but have to go in to work as normal on Monday . What should I expect? Will I be told to pack up there and then or will I have to answer calls from disgruntled customers ? So I know I'll get 3 weeks statutory redundancy, tax free I think? What kind of notice period do I have to get? Think I'm due some holiday pay aswell? Will I be able to sign on straight away ? I'm worried as I have just bought a flat so I know I can't claim housing benefit, so worried I will fall behind with the mortgage . Any advice welcome. I live in Scotland by the way if that makes any difference .

Best answers:

• Hi PG. I am sorry to hear of your misfortune and didn't want to read and run, but I have no advice to offer from a redundancy point of view. As hard as it may be, and particularly at this time of year, try and put a positive spin on it and tell yourself that better, more rewarding challenges are just round the corner after Hogmanay. I wish you all the best for 2015.
• Avoid this thread then for less complimentary comments out employees like you https://forums.moneysavingexpert.com/....php?t=5141108
• Location is here Main site > MoneySavingExpert.com Forums> Household & Travel> Consumer Rights > City Link in Administration (Page 1)
• I am an employee. I have been there 2 years but am 44 so should get 1.5 weeks for every complete year. My holiday year runs 1 feb-31 Jan and I still had 8 days left to take. Wasn't sure if the same rules applied when a company goes under as it does if your job is just made redundant?
• what does AIUI mean?
• The company being in administration does not mean you will be made redundant. It means you MAY be. But worry about that when it comes - if this is the case it probably won't take long to find out. However, it is far from unusual for companies of this size to be bought out by another company, and whilst that does not necessarily mean that there will be no possible redundancies, the law does mean that it is somewhat harder because of TUPE obligations. Certainly, the contracts held by the company will be worth something, so much will depend on how these and other assets are disposed of.
  Report for work as instructed and do not do anything until you are SURE that you will not be getting paid / are being made redundant - although obviously if you can get another job, then a bird in the hand is worth more than three years statutory redundancy. Being in administration also doesn't mean that a company has no disposable assets or money - there may be enough money in flow to pay wages for some time yet whilst the administrators try to sort things out. At this moment in time you are not unemployed, your contract hasn't been terminated, and you do not wish to give any appearance that you are resigning. So benefits are not on the table yet.
  If payment of wages becomes an issue then get advice on the benefits board, if the administrators don't advise you - they should though.
• If you are made redundant then go straight and make an appointment to sign on.
  As far as pay goes, you should receive your notice period, plus pay for your outstanding leave (subject to leave year start/end dates and carry-over entitlements, and the statutory redundancy (up to Ј460?/week). Redundancy pay is tax-free, but holiday and notice are taxable.
• The National Insurance Fund administered by the Redundancy Payments Office based in Birmingham in my experience is quite efficient taking at the most six weeks to process all payments due. Usually in two bites, first of all any Statutory Redundancy Pay and then Lieu of Notice/Holiday Pay as this needs the applicants verification of any JSA benefits or new job obtained within the Notice Period.
  Basically it all depends upon how quick the Administrators are in sending out the Application Paperwork. A tip when completing it: Give your email address and bank details on the forms as this results in speedier acknowledgments and payments.
• The company is in the hands of an administrator. They will look into the company records to see if there is any chance of the company being turned-around, whether the company has a sale value equal to or greater than it's debts, or whether the company is beyond saving and thus needs liquidating.
  This can take time (I have known a company to be run by the administrators for over a year before it was sold). So until they have made a decision, it should be business as usual as far as work is concerned.
  Keep turning-up and doing your job until told otherwise by the appointed administrator.