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Does my DH's contract still stand?(14 Posts)
In my DH's contract it states that if he is made redundant then they need to give 6 months notice or money to that value.
His company has just gone into Administration and everyone will be made redundant sometime over the next 6 weeks.
Does this contract still stand?
If it is in Administration I think it depends where he comes in terms of priority as a creditor when the assets are disposed of. Staff costs are not usually top of the list unfortunately so he could just get Statutory Minimum . Is it possible the business may yet be sold on as a going concern and the staff kept on with it?
Tas if his company has gone into administration he is unlikely to get what is owed him according to his contract, not because they refuse to pay him but because the money isn't there.
Have a look here about what happens when a company goes into administration. There will be a process for DH to claim money owed him, but as there is likely to be a long list of creditors he is unlikely to get all he is owed unfortunately. He should receive proper communication about what to do in due course, who to contact for queries, that kind of thing.
There were offers on the table to buy the company but they have now all been pulled, so they announced this morning that everyone will be made redundant within the next six weeks.
He has also been offered a 25% bonus if he stays the full six weeks. How can they offer this if they dont know if they can pay it.
Really? That sounds unusual. 25% of what?
When they offered him that did they confirm that he will be receiving the pay in his contract as well? They shouldn't offer stuff over and above contractual pay if they are not able to even pay what is contractual pay.
How official was this offer of 25% of something? It sounds all very bizarre to me, if they're in administration that would normally mean finances are not good to say the least, they probably owe lots of people money. If they are a bid dodgy they may be offering this 25% knowing that they won't have to pay it.
I would probably advise your DH to look for something new as soon as he can and not assume he'll get either his contractual notice or this mysterious 25% tbh.
25 % of his wage (£70K)
The company are ILVA.
They have only gone into Administration because the Bank have pulled their funding out. They are still making a profit. The Administrators have said stores will be open for at least 6-8 weeks to sell off stock and that they will honour all wages and holiday due.
Ok well that sounds slightly different, maybe there are enough funds there to cover contractual obligations. I would advise DH to contact the administrators and ask the question. If they've said all wages and holiday due will be covered, I'd ask for specific confirmation that that will include contractual notice pay and will include this bonus.
Well I wouldn't bank on it, certainly not the redundancy, and probably not the bonus either.
Mind you, if he's on 70K he's pretty high up the organisation, so he needs to talk directly to the administrators/senior management, and get a clear declaration in writing of what they're planning.
But if the bank have pulled out, and there is no buyer on the horizon it doesn't look good (but with a recession in progress no-one is expanding in retail ATM).
In his shoes, I'd be applying for jobs, and if he gets a half decent offer within the six weeks, bugger the mythical bonus.
He has put his CV around to agancies today and has been phoning contacts like mad.
We are due to go on Holiday in a weeks time, do you think we should go or cancel?
oh, I'd go if I were you, I guess you have already paid for it?
Your insurance may refund you, but if you can relax and stop worrying for a week or two dh will probably perform better at interview after a break
Presumably he'll still be paid while away ? August is often a lousy month for recruitment anyway. Hopefully the agencies can work to line a few opportunites up for his return.
The company may yet be able to sell on the leases of the stores, fixtures and so on to other retailers .
If they want him to stay on they must think there is hope of finding a buyer still and apparently have the money to fund him for that period otherwise what would be hte point in retaining key staff.
If stores are still open surely the profits made have to go to pay those wages, basic wages, and then those higher up the pecking order ,not the bonus. Why doens't he say he will stay o nthat period if they deposit the 25% of £70k with an independent solicitor in a separate bank account.
Mind you if he cannot find any other work in that period then he might as well carry on working. Do you or he earn the most?
but it is in the interest of the company and receiver to have some continuity of management through to closure, even if the business is ultimately not sold, hence the retainer bonus. Might mean any immediately available jobs have already gone to those who bail out sooner though. It is a risk and he should get a written guarantee if he decides to stay on .
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