Employer in administration - JSA question

[TeamBigfoot]

Hi all,

Unfortunately, last week my employer entered administration which resulted in most staff (including me) being made redundant with immediate effect. We were told on a call with representatives from the Insolvency Practitioner. They also advised us to sign on with the Jobcentre as soon as possible.

I'm currently going through onboarding checks with a firm to contract with their clients (potentially in the new year). I will be paid on a days worked basis and these checks have not yet completed. I have signed a contracting agreement with them but as of right now, I do not have a job technically until all checks are complete and they have an assignment for me.

The checks have not been completed and they have informed me that when they complete, I will be assigned to someone who will look to find me a role within a project next year.

I'm confused as to whether I should be signing on with the Jobcentre or not. I'd love to hear your thoughts on this.

[fat80b]

TeamBigfoot said:

Hi all,

Unfortunately, last week my employer entered administration which resulted in most staff (including me) being made redundant with immediate effect. We were told on a call with representatives from the Insolvency Practitioner. They also advised us to sign on with the Jobcentre as soon as possible.

I'm currently going through onboarding checks with a firm to contract with their clients (potentially in the new year). I will be paid on a days worked basis and these checks have not yet completed. I have signed a contracting agreement with them but as of right now, I do not have a job technically until all checks are complete and they have an assignment for me.

The checks have not been completed and they have informed me that when they complete, I will be assigned to someone who will look to find me a role within a project next year.

I'm confused as to whether I should be signing on with the Jobcentre or not. I'd love to hear your thoughts on this.

I would say that it might be wise to do the Jobcentre bit as well as it is covers you in the eventuality that the contracting stuff takes a bit longer to arrange than you think.

For me, when I went through something similar, I didn't do the jobcentre piece initially and only did it after I'd been parked on my bum for a few months. In hindsight, I wish I'd done it immediately and would do so if I found myself in the same position again.

[Dynion Araf Uchaf]

don't do the job centre thing. You may get some UB40 money, but you have to pay it back through your tax code, when you get a job and so it'll be screwed for years. It's just not worth it unless you plan on being long term unemployed/ imho

[MickC]

Dynion Araf Uchaf said:

don't do the job centre thing. You may get some UB40 money, but you have to pay it back through your tax code, when you get a job and so it'll be screwed for years. It's just not worth it unless you plan on being long term unemployed/ imho

Why would you pay DWP out of work benefits back through your tax code? its paid in arrears and if you get a job it stops. HMRC might take working tax credits back that way if they overpay, but not DWP benefits.

[Dynion Araf Uchaf]

I had to pay back my JSA when I claimed for a couple of weeks in 2014.

[anonymous-user]

MickC said:

Dynion Araf Uchaf said:

don't do the job centre thing. You may get some UB40 money, but you have to pay it back through your tax code, when you get a job and so it'll be screwed for years. It's just not worth it unless you plan on being long term unemployed/ imho

Why would you pay DWP out of work benefits back through your tax code? its paid in arrears and if you get a job it stops. HMRC might take working tax credits back that way if they overpay, but not DWP benefits.

UB40? Is this 1975? You can claim UC and also apply for New Style JSA if you’ve made regular NI contributions, it last for 6m. Both can be claimed on line. You cannot claim any other benefit unless you have some sort of health condition. Both benefits are paid in arrears by DWP. HMRC has nothing to do with it and neither has your tax code.

Edited by anonymous-user on Tuesday 21st November 19:31

[Du1point8]

Sign on to JC just to get your NI covered if nothing else... does it really matter in the grand scheme of things if you have to pay some JSA back... Not really, but try to get the NI back is a ballache, ask me how I know!!

Got a compromise agreement and it was substantial back in 2008 and as such didnt need JSA, but I didnt know that I needed to sign on to keep my credits up to date and that was a PITA to explain to someone who clearly doesnt want to be in the JC, nor do they really like people.

[Magicmushroom666]

In case you didn't know, theres a government fund to cover some wages not paid due to thje company going into administration. I had it happen to me, and the fund although limited did pay out my full missed wages as I wasn't on a large salary.
The administrator engineered things so that their bill pretty much hoovered up every penny that the company had coming in, and nothing was left to pay staff, suppliers etc. I imagine that's pretty common.