Company in Administration

rgmmg

Hi. Not too knowledgeable on this stuff so bear with me

My company's UK parent has gone into administration. Although they have a number of businesses it seems not all are affected, but I understand we are. The Adminstrators have been in touch with the Irish company and made it clear the situation is severe at the UK company so, although we've booked sales and are profitable, it looks like we're going down too as we've been instructed we're affected. With no credit facilities to service distributors in Ireland, it is only a matter of time so I am preparing for the worst, speaking with a recruiter today. The UK company is in a much worse state than feared and have a lot of money owed to creditors.

I was just wondering if anyone had experience of this before and what, if anything, I might get in terms of redundancy from a company in adminstration? I'm really struggling to know what the implications are and no one seems to know what is going on or at least telling us. Any advice or comments would be appreciated. Thanks.

Stheno

Most likely statutory redundancy of two weeks per year if they can afford it

rgmmg

Thanks. I know creditors are first in line but wonder if it's mandatory for a company to set money aside for employees or if it's only after all creditors have been paid or get a proportion of what's left.

davo10

rgmmg wrote: »

Thanks. I know creditors are first in line but wonder if it's mandatory for a company to set money aside for employees or if it's only after all creditors have been paid or get a proportion of what's left.

Creditors and employees are unfortunately last in line as they are unsecured debts, the receivers and the banks come first, usually there is very little left after that.

rgmmg

Thanks.

gctest50

Get references asap

JustAThought

gctest50 wrote: »

Get references asap

& empty your desk & drawers - its awful to come into work & find a locked door & remember then that your gym bag, spare charger , favourite pen & 'stuff' are all irretrievably lost

Sorry to hear about your situation. Get CV's going now - by the time you get recruited , vetted & have 'notice time', to start your new job you will probably still be in line for the refundancy payment - if it happens. Better to have something new secured than be competing & salary setting against all your former colleagues in a buyers employment market

Terrible news - very sorry about your situation

The_Conductor

Stheno wrote: »

Most likely statutory redundancy of two weeks per year if they can afford it

If they can't afford statutory redundancy payments- DSP cover them- the employees will at very least get statutory- though not necessarily paid for by the company itself.

Stheno

The_Conductor wrote: »

If they can't afford statutory redundancy payments- DSP cover them- the employees will at very least get statutory- though not necessarily paid for by the company itself.

Did that not change a couple of years ago where the DSP no longer cover statutory?
Think it was 2014?

The_Conductor

Stheno wrote: »

Did that not change a couple of years ago where the DSP no longer cover statutory?
Think it was 2014?

It changed in 2014- not all employees are entitled to statutory redundancy- however, those who are- will, if the company can prove an inability to pay- be covered from the Social insurance Fund (run by DSP).

Eligibility rules apply- such as needing 2 years continuous service immediately preceding the redundancy etc (there are a specific list of rules detailing what constitutes an 'eligible employee')

Its harder to qualify for a SIF redundancy payment than before- but if you do qualify (http://www.citizensinformation.ie/en/employment/unemployment_and_redundancy/redundancy/redundancy.html)- it is covered by DSP