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Employer possibly going into administration, due to go on maternity leave

(10 Posts)
Sorelip Thu 18-Aug-11 18:21:45

Although it is not definite, I believe that my employer may be going into administration. I am due to go on maternity leave on 31st October. What happens with regards to SMP, should I be eligible for Maternity Allowance instead? Is there anything I should be aware of?

Thanks in advance for any advice.

Ellypoo Thu 18-Aug-11 18:26:06

You should be eligible for Maternity Allowance - look on direct.gov.uk there should be loads of info on there.
Unfortunately, as I understand it, if your employer does go into administration, you are unlikely to receive any redundancy pay or accrued holiday pay etc.
I'm sure someone else will be able to give you more information though.

KatieMiddleton Thu 18-Aug-11 18:26:41

If they are in administration and still trading them everything should carry on as normal regarding your SMP. Is it likely the business may be wound up completely?

Sorelip Thu 18-Aug-11 18:45:57

I'm really not sure. I'll update tomorrow afternoon, as we have a company-wide meeting at 3pm. Meetings at 3pm on a Friday are never good news, are they.

KatieMiddleton Thu 18-Aug-11 19:10:06

Fingers crossed for you. If worst happens you'll still have your maternity allowance but it's still a pita as you have to claim via Job Centre and you don't get the enhancement but at least it's not taxable.

Grevling Thu 18-Aug-11 23:11:43

Once you've qualified for SMP even if your employer goes insolvent HMRC will pay the amount your owed.

flowery Fri 19-Aug-11 09:48:58

As Grevling says, if you are entitled to SMP you'll get it. If your employer is unable to pay it HMRC will. You aren't entitled to MA unless you're not entitled to SMP, so if you've met the requirements for SMP you won't be able to claim MA anyway.

KatieMiddleton Fri 19-Aug-11 11:24:10

Sorry I forgot to mention once you get to your qualifying week (the 15th week before the week in which the baby is due and you work at least one day that week) you'll get SMP otherwise it's MA.

I don't know your EDD or I'd check if you're ok now.

Sorelip Fri 19-Aug-11 16:53:55

My EDD is 6th December, so I think next week is the qualifying week. But it turns out that the company isn't going into administration, but is being sold, and things should continue which is normal. Change of location though, so I will be bringing my maternity leave start date to as early as possible.

Sorelip Fri 19-Aug-11 16:54:30

And thanks to those who gave advice, I certainly slept a bit better for it last night smile

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