Company gone into administration query

20 posts Page 1 of 2
 
 

Viki.W

User avatar
Posts: 5647
Joined: Fri Feb 15, 2008 7:34 pm
Location: United Kingdom

Post by Viki.W » Mon Aug 18, 2008 6:48 pm
Hey all, sorry I'm posting this here but I told my friend I would try and find out for her.

My friend has just been told that the company she is working for has gone into administration. They walked in today and said that the staff don't need to come in tomorrow but they will be holding a meeting soon.

My friend is due her monthly wages on Wednesday, will she still get paid? What usually happens in these circumstances. She's devestated and five months pregnant so you can imagine how she's feeling.

Any advice would be greatly appreciated, thanks, X
If you would like to talk to me about your debt problems, please visit:
http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
 
 

LoneRanger

User avatar
Posts: 894
Joined: Fri Jun 20, 2008 6:00 pm
Location: United Kingdom

Post by LoneRanger » Mon Aug 18, 2008 6:53 pm
she is definatly entitled to get paid and if they dont hold a consulation period then they will have to pay her in leiu of notice. thats from my experience viki but i dont know what the laws are
Steve.

IVA approved!
 
 

kallis3

User avatar
Forum Expert
Posts: 77175
Joined: Mon Mar 17, 2008 4:02 pm
Location: United Kingdom

Post by kallis3 » Mon Aug 18, 2008 6:55 pm
Viki, that's sad news for your friend, just what she doesn't need at the moment.

I haven't got a clue about how companies operate, but I am sure someone on here will know.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

LoneRanger

User avatar
Posts: 894
Joined: Fri Jun 20, 2008 6:00 pm
Location: United Kingdom

Post by LoneRanger » Mon Aug 18, 2008 7:34 pm
Also if she is bank paid then the transfer would have happened by now as it takes a few days before it will go into her account
Steve.

IVA approved!
 
 

Viki.W

User avatar
Posts: 5647
Joined: Fri Feb 15, 2008 7:34 pm
Location: United Kingdom

Post by Viki.W » Mon Aug 18, 2008 7:37 pm
Well that's what she thought Steve but she's just had another call from someone else in the office (my mate was off today) and she said that they have been told that they won't get paid on Wednesday. She's up the wall now poor thing, her loan payment is due out this week.
If you would like to talk to me about your debt problems, please visit:
http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
 
 

fuzzy_dunlop

User avatar
Posts: 138
Joined: Mon Jul 28, 2008 8:45 am
Location:

Post by fuzzy_dunlop » Mon Aug 18, 2008 7:50 pm
not sure if administration is the same as liquidation but if they are similar she wont get paid
she will need to claim all money owed to her from the government the company i worked for went into liquidation last year
it took 4 weeks to get my redundancy
and several months to get my pay owed plus holiday pay

the ip who worked on the winding up of our company dealt with all of this
she should also get a booklet either from her company or the ip telling her what she is entitled to

sorry if im barking up the wrong tree [:)]
 
 

Cybus

User avatar
Posts: 392
Joined: Fri Jul 13, 2007 7:44 pm
Location: United Kingdom

Post by Cybus » Mon Aug 18, 2008 8:49 pm
I don't think there is any question of being paid. It's going to be a matter of when.

If the Company is in Administration now, I believe it is unlikely that your friend will receive her pay in the normal way. Correct me if I am wrong, but the bank would most likely process payments, in respect of salary to be paid by Wednesday, today.

She is going to have to wait and see what the Administrators plans are.

There are exit routes from Administration which generally involve either shutting the Company down by way of liquidation, in which case your friend will claim her pay plus any unpaid Holiday pay from Redundancy Payments, who will also process Redundancy and Notice pay entitlements. Or

The other alternatives may be a re-structuring it in such a way that it can 'trade out' of the current position and effectively write off debts by way of a Company Voluntary Arrangement. It depends how the re-structuring works - the Company may lay off staff to cut overheads. Those laid off may possibly be offered voluntary redundancy packages paid by the Company or they may be laid off by way of compulsory redundancy in which case they would claim as in liquidation above. Those retained, it should be business as usual, though the pay may not necessarily hit the bank at the time expected.

Another possibilty is a buyer for the Company is found. If that happens it is by no means guaranteed that the employee contracts will be taken on by the new Company. If they aren't then the claim process as in liquidation would be adopted. If they do take employees on then Transfer of Undertakings regulations will apply - basically the new company adopts the contract. Continuity of employent would be preserved and she will be paid by the new employer.

Until the Administrator's Report is prepared, unless the meeting she has been advised of explains her position, it's unfortunately a matter of waiting.
Tell it like it is.
 
 

MelanieGiles

User avatar
Industry Expert
Posts: 47612
Joined: Tue Jan 09, 2007 10:42 am
Location:

Post by MelanieGiles » Mon Aug 18, 2008 9:22 pm
As Cybus has already commented, Administration does not necessarily bring the end of a company, and in the early days the Insolvency Practitioners acting will be looking at the viability of the company and determining strategy. It is unlikely that they will pay any pre-Administration arrears of salaries, but may well guarantee the payment in the future - similarly they may look to slim down the workforce to make the company more attractive to a purchaser. However, this decision will be based upon the current trading position of the company and its projected cashflow.

If your friend is unfortunately made redundant as a result, she will be able to claim a payment of up to £310 per week from the Government's National Insurance Fund.

From my experience of working with Administrations, the Administrators will be pretty clear of their future strategy during the first week of the case so she ought to have some news shortly.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Viki.W

User avatar
Posts: 5647
Joined: Fri Feb 15, 2008 7:34 pm
Location: United Kingdom

Post by Viki.W » Mon Aug 18, 2008 9:41 pm
Thanks you so much Cybus and Melanie for taking the time to give your advice. I have just called my friend and read her your replies. She is most grateful. I hope it all works out for her, she's very worried.
If you would like to talk to me about your debt problems, please visit:
http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
 
 

Soulgrowth

User avatar
Posts: 2446
Joined: Fri Jul 07, 2006 9:38 pm
Location: United Kingdom

Post by Soulgrowth » Mon Aug 18, 2008 10:04 pm
Hi Viki

How awful for your friend ... do let her know that we are all thinking of her.

Debbie
Debbie
 
 

Viki.W

User avatar
Posts: 5647
Joined: Fri Feb 15, 2008 7:34 pm
Location: United Kingdom

Post by Viki.W » Mon Aug 18, 2008 10:06 pm
Ah thanks Debbie, that's nice of you. I'll tell her.[:)] X
If you would like to talk to me about your debt problems, please visit:
http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
 
 

Viki.W

User avatar
Posts: 5647
Joined: Fri Feb 15, 2008 7:34 pm
Location: United Kingdom

Post by Viki.W » Tue Aug 19, 2008 9:22 pm
Just a little update, I know it's nothing really to do with IVAs. My friend went in to work today and the Administrator made everyone redundant and said they will NOT be getting paid any wages owed or any holiday pay or redundancy pay at all. He gave them a government form, she can claim up to £800 but it may take some time. Her wages due tomorrow were £1800ish. I've told her to go to the job centre and claim JSA but she reckons that noone will employ her being nearly 6 months pregnant, bless her. Thanks to all that replied.
If you would like to talk to me about your debt problems, please visit:
http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
 
 

Kazzy E

User avatar
Posts: 850
Joined: Thu May 08, 2008 11:18 pm
Location:

Post by Kazzy E » Tue Aug 19, 2008 9:46 pm
Aw Viki, just logged in and read your post. Really sorry for your friend. She could've really done with that money, what with little one on the way, bless her, life deals some bitter blows sometimes doesn't it? I think you may be right, probably not many companies would employ her now she is this far gone, but with no maternity pay its gonna be a struggle for her. I truly hope she gets it all sorted. Unfortunately, with the current climate, its sad to see so many companies going belly up. Best wishes to her, she's lucky to have a friend like you. Rgrds Kazzy x

Get her to have a little look at this website, it may help:

http://www.welfarerights.net/guides/quick.html
There is light at the end of that dark tunnel. Promise.

Visit my blog at: http://kazzy.blogs.iva.co.uk/
 
 

Viki.W

User avatar
Posts: 5647
Joined: Fri Feb 15, 2008 7:34 pm
Location: United Kingdom

Post by Viki.W » Tue Aug 19, 2008 10:00 pm
Ah Thanks Kazzy, I appreciate that. I'll email her the link now. I want to try and help her as much as I can. I told her about my IVA and she's been really supportive, she's lovely and works really hard, she doesn't deserve this. X
If you would like to talk to me about your debt problems, please visit:
http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
 
 

Kazzy E

User avatar
Posts: 850
Joined: Thu May 08, 2008 11:18 pm
Location:

Post by Kazzy E » Tue Aug 19, 2008 10:04 pm
Thats lovely, so good to see there's still decent people in this world. Hope she gets it all sorted. Best wishes to her from me. Kazzy x
There is light at the end of that dark tunnel. Promise.

Visit my blog at: http://kazzy.blogs.iva.co.uk/
20 posts Page 1 of 2
Return to “postings for august”