Advice please on redundancy

Yep, some part of the government will pay the redundancy payment at the minimum rate,

tim

When this happened to me many years back, the redundancy is paid by the government who then become a creditor meaning that the company has to pay it back if it can afford to do so when its assets are liquidated.

The government will pay up if the company goes into administration.

However what happened to me some years ago was that the company did not go into administration but simple ceased trading. As there were no funds in the company to pay out owed wages or redundancy money the staff got nothing.

That actually could happen here. When I say goes into administration, it may just close, as you say no funds.

If this is the case, do the government still pay the redundancy.

If no-one *puts* the company into administration and the company ceases trading then the government will not step in.

But is there not some process whereby the employees, as creditors[1], can prevent the company just ceasing trading and force it into administration?

They can initiate the administration. But the person/business that puts the company into administration gets to pay all the administrators costs if they can't be recovered from the business! If there's nothing in the business to pay for the costs (I worked for a small IT firm, all that was left was a few old computers and a domain name. Sadly nobody thought they were worth much in '96.) then you're stuffed.

"Anthony Cunningham" wrote

But wouldn't it depend on how much (in total) the govt would pay the employees, compared to the administrators costs?

The compensation received might cover the administrators costs, with some left over...

Why didn't the company make its staff redundant, then?

Rob Graham