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Employee rights when business goes into administration

5 replies

Waitingfordoggo · 01/12/2023 19:56

Would be grateful for any knowledge or experience anyone can share. I’ve read loads on gov website and other sites but am having trouble understanding all the information.

When a company goes into liquidation, I know employees are entitled to claim pay for hours they have already worked, and I believe this also applies to workers on zero hours contracts.

There appear to be two other possible payments: a redundancy payment and notice pay, subject to length of time employed by the conpany (or are these actually the same thing?)

Are zero hours workers entitled to all of these payments or just their wages for hours worked?

And a follow up question: if the employer has totally fucked things up to the point where the company doesn’t have enough assets to pay all the wage bills, do workers still get the full range of payments they’re entitled to? If so, how?

Grateful for any help and for simple explanations as I can struggle to understand business/finance concepts and the terminology around them.

OP posts:
Waitingfordoggo · 01/12/2023 19:58

…also just remembered administration and liquidation are not necessarily the same thing. I’m certain it is liquidation in this case.

OP posts:
Waitingfordoggo · 01/12/2023 20:10

Thank you @GrannyAchingsShepherdsHut. I read that page a few days ago but still not sure about the zero hours bit. Will have another look at the article.

OP posts:
GrannyAchingsShepherdsHut · 01/12/2023 20:14

Sorry, I don't know about the zero hours bit. I just know a relative got paid by the fund when their employer did a midnight flit.

Waitingfordoggo · 01/12/2023 20:20

That’s reassuring- thanks @GrannyAchingsShepherdsHut. I’m zero hours but some other colleagues are on proper contracts so at least I can feed back to them that there is a fund available in case there is nothing in the pot to pay staff!

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