What happens if the Company you are working
for goes into Administration or becomes Insolvent?
In these circumstances, there are two potential
scenarios:-Administrators make everyone redundant on the day.
They are usually not concerned with the consultation issue
because the Company has no funds. Technically, making a claim
for unfair dismissal in those circumstances is largely pointless
unless the Company comes out of Administration or Liquidation
and starts the trade normally again or the Company is required
or the assets are required by a new Company and there is a
Transfer of Undertakings.
I will deal with the issue of Transfer of
Undertakings under a separate heading. It is one of the most
complex areas of employment law.
You as a lay person will need to seek advice
from an employment expert in order to determine whether there
is a transfer or not. If you are in this situation then we
have a link to an employment law specialist that can advise
you. There are often disputes whether the Transfer of Undertaking
Regulations apply or not to varying circumstances.
The best approach to adopt in these circumstances
is to make a claim for unfair dismissal on the basis that
if there is a Transfer of Undertakings, the claim will take
effect and also, to make a claim for a protective award at
the same time.
If the Company does go into liquidation
or ceases to trade and they do not pay the redundancy payments,
holiday pay, outstanding wages and notice, then you may apply
to the Redundancy Re-payments Office in your regional area.
The Administrator or the Insolvency Practitioner normally
will send you a form to fill out for the Redundancy Payments
Office which details what you can claim. There are ceilings
on the level of claims that you can make in these circumstances
and any payment of a protective award after the Tribunal has
made that determination, can be set against any payments you
receive for wages already paid by the Redundancy Re-payments
Office.
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