Employer going into administration

[IssuesWithEmployer]

Hi, if anyone can help i would be very grateful

My employer has gone into administration, but has set up a new company

How does this affect contracts and pay as I believe that we have to have new terms on employment, but to be honest things are so chaotic that I don't think it's happening anytime soon.

What is the likelihood of the company surviving if they have had an investment but no new work?

I don't believe you will have any rights or continuity of employment with the new company - that's why they do it. If you can get out with some redundancy pay and your notice I would take it and run!

Ok this sounds like a possible pre pack administration. In fact the contracts of employment should carry on under what is known as TUPE in a pre pack administration. However a Phoenix where a company is liquidated and the directors start a new company then you are not entitled to redundancy. Have a look at this page for rights of employees in insolvency

www.companyrescue.co.uk/company-rescue/guides/redundant-employee