Company in Administration - what do employees get paid?
Discussion
Hi all
A quick question for a friend who's not sure what her entitlement would be. I gather that when a company goes into administration the employees are entitles to statutory redundancy pay, but is any payment made for outstanding holiday entitlement or notice period? There's about 2 weeks holiday owed, and a one month notice period.
Any advice gratefully received.
Regards
Mark
A quick question for a friend who's not sure what her entitlement would be. I gather that when a company goes into administration the employees are entitles to statutory redundancy pay, but is any payment made for outstanding holiday entitlement or notice period? There's about 2 weeks holiday owed, and a one month notice period.
Any advice gratefully received.
Regards
Mark
Yes I think that's what will happen, though there's quite a bit still up in the air so to speak
As many others will no doubt have said in the past, many thanks for the response. I think there should be a campaign to have you 'net knighted' for services to PH, the advice you offer and time taken responding to numerous topics is the stuff of legends.
As many others will no doubt have said in the past, many thanks for the response. I think there should be a campaign to have you 'net knighted' for services to PH, the advice you offer and time taken responding to numerous topics is the stuff of legends.
Edited by MHB on Monday 27th February 23:26
If there isn't enough money left to pay the employees their notice, holiday or redundancy pay (or outstanding commission, expenses, etc) then the government pay the statutory minimum - take a look at www.insolvency.gov.uk. The administrator will advise if this is likely and will distribute the documents.
If it is paid by the government, any holiday pay, notice period and redundancy will be capped at £350 per week, and any expenses owed will be treated as any other unsecured creditor.
There is a document you can download called "redundancy and insolvency - a guide for employees". it'll explain it all.
If it is paid by the government, any holiday pay, notice period and redundancy will be capped at £350 per week, and any expenses owed will be treated as any other unsecured creditor.
There is a document you can download called "redundancy and insolvency - a guide for employees". it'll explain it all.
A director could be a shareholder, or an employee.... and neither, or both....
A shareholder is likely to lose their investment in the business, and could be liable for other costs if there were personal guarantees.
A director is likely to be replaced as a director by the administrator (certainly if there is little chance of the company coming out of administration), and may have other costs due to personal guarantees.
An employee will be as I explained in a previous post. But if the employee is either a shareholder or a director, they will be treated exactly the same as every other employee.
This is how it worked in my experience anyway!!
A shareholder is likely to lose their investment in the business, and could be liable for other costs if there were personal guarantees.
A director is likely to be replaced as a director by the administrator (certainly if there is little chance of the company coming out of administration), and may have other costs due to personal guarantees.
An employee will be as I explained in a previous post. But if the employee is either a shareholder or a director, they will be treated exactly the same as every other employee.
This is how it worked in my experience anyway!!
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