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Company administration or insolvency

redarrow Return to the main Redundancy section
redarrow Redundancy – the law
redarrow Large Scale Redundancies
redarrow Company Administration or Insolvency?
redarrow Redundancy – What am I entitled to?
redarrow Alternative Employment

What happens if the Company you are working for goes into Administration or becomes Insolvent?

To see if you have a claim click here to use our Claim Evaluator

In these circumstances, there are two potential scenarios:-Administrators make everyone redundant on the day. They are usually not concerned with the consultation issue because the Company has no funds. Technically, making a claim for unfair dismissal in those circumstances is largely pointless unless the Company comes out of Administration or Liquidation and starts the trade normally again or the Company is required or the assets are required by a new Company and there is a Transfer of Undertakings.

I will deal with the issue of Transfer of Undertakings under a separate heading. It is one of the most complex areas of employment law.

You as a lay person will need to seek advice from an employment expert in order to determine whether there is a transfer or not. If you are in this situation then we have a link to an employment law specialist that can advise you. There are often disputes whether the Transfer of Undertaking Regulations apply or not to varying circumstances.

The best approach to adopt in these circumstances is to make a claim for unfair dismissal on the basis that if there is a Transfer of Undertakings, the claim will take effect and also, to make a claim for a protective award at the same time.

If the Company does go into liquidation or ceases to trade and they do not pay the redundancy payments, holiday pay, outstanding wages and notice, then you may apply to the Redundancy Re-payments Office in your regional area. The Administrator or the Insolvency Practitioner normally will send you a form to fill out for the Redundancy Payments Office which details what you can claim. There are ceilings on the level of claims that you can make in these circumstances and any payment of a protective award after the Tribunal has made that determination, can be set against any payments you receive for wages already paid by the Redundancy Re-payments Office.

To see if you have a claim click here to use our Claim Evaluator


The site author/owner has endeavoured to give clear information to benefit the reader. The information is no substitute for obtaining specific advice about any claim you may have from a person qualified to give it. The examples, and circumstances described etc bear no relation to any actual case and any resemblance to real circumstances is purely accidental and unintentional. The site author/owner accepts no liability for any mistake, error or inconsistency in the text and the reader should ALWAYS OBTAIN specific advice about his/her own situation. In order to assist the reader, you can give your details so that a qualified advisor can call you free of charge and assist you further via CLAIM EVALUATOR