What Are Your Rights If A Company Goes Into Administration?

February 23, 2018 9:00 am

It doesn’t matter if you are new to a company or have worked there for years, if it goes into administration you are likely to be worried. One of the major concerns will be job security; another will be whether you will be paid. In this article, we are going to look at what your rights are in the event of your company going into administration.

Stay calm
While it is a stressful time, it is important to stay calm. A company going into administration does not necessarily mean it will be closed. It could mean it needs to be restructured, or it may be purchased by another company.
If this is not possible, you should be informed. If you are made redundant, there is a 14-day period where you become an ordinary creditor where you should be paid your outstanding wages. If you are retained past this point, you should be able to become a preferred creditor, allowing you to claim up to £800 in owed wages and commission, as well as any outstanding holiday pay or pension payments.

In some cases, it may not be possible to claim through the company, and you may need to pursue a claim through National Insurance or through an employment tribunal. Payments such as sick pay or maternity pay should be claimed through HMRC or the Department of Work and Pensions.

Talk to us
It is possible to go to a tribunal without representation. However, it helps to have someone to hand who knows the law regarding administration. It is about knowing where to go in order to reclaim your money and to make sure as much can be recovered as possible.

This is why Larcomes believes in being ‘big enough to specialise, small enough to care.’ What this means is that we have a team of legal representatives who have been specifically trained to represent you as effectively as possible, as well as providing the resources to give them the tools to present the best possible case.

However, we also recognise that court cases can be stressful, and this is particularly the case when your job is either at risk, or you have been made redundant. Legal representatives are often depicted as cold and professional, but the truth is we are people too and want to support people through difficult periods. We will involve you and guide you through the process, answering your questions and giving you the customer service that you deserve.

If you are concerned about your company going into administration and want to know what your options are, or you are looking to start legal proceedings, or an employment tribunal then you can contact us for an initial consultation. This will allow us to look at your circumstances and the best way to help you get money back from the company, as well as giving you a realistic idea of a positive verdict. For more information or to arrange a consultation, please go to our website to find an appropriate legal representative and contact them today.


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