What happens if company goes into administration?

A question about : What happens if company goes into administration?

Not for me but a question for a friend (no, really it is!)

He works for a large company and is entitled to about 14 months worth or redundancy pay. If the company goes into administration would he still get this or is it then just if the Company has enough money left or does it have to ringfence this money somewhere?

Thanks

Best answers:

• The redundancy would become a debt of the companies, which the company (or administrators) would remain responsible for paying. If not, as far as I know I think there is a backup government fund. But your friend wont get the full amount via the government.
• If you go here you will find all the necessary info on redundancy payments for companies that have become insolvent or gone into administration. Should have all the info that you or your friend will need and also explains how to go about claiming if the company can't or don't pay you up. This goes for unpaid wages, redundancy, tribunal payouts etc etc.
  Hope this helps.
• Thanks again.
  Doesnt seem to state how much the governments redundancy actually quates to unfortunately
• It does, it states that they will pay out owed money upto the equivalent of a maximum of Ј330 a week.
  His entitlement is worked out against his age.
• Found it:
  https://www.businesslink.gov.uk/bdotg...esslink.gov.uk
  Not a lot is the answer i suspected!!!