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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 48788
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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The company I worked for was put into the hands of an

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For Ben Jones
The company I worked for was put into the hands of an administration firm in August 2017, a buyer was not found and the company ended up being insolvent, all staff were made redundant yesterday (22.9.17). We did not receive a formal written notice from the administrators, all we got was a phone call a week prior to tell us we would be closing and all would be redundant. My contract states termination of one month in writing, we have been paid up to the date they closed us down and have said we will get a letter in the post and to claim any money owed through the government but we will only receive 2 weeks notice pay from them. I feel they have treated us appallingly, nothing was ever in writing and would like any advice as I feel the administration company have ripped us all off and left 48 members of staff unemployed with no compensation and very little communication from them Can I take this matter further either against the administrators or the company I was employed with ??
Submitted: 2 months ago.
Category: Employment Law
Expert:  Ben Jones replied 2 months ago.

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Expert:  Ben Jones replied 2 months ago.

Do you think the company actually had money/assets to pay you all what you were due?

Customer: replied 2 months ago.
Not sure how much money there is at present but I do know there is a lot of stock still to be sold off and that the head office site which they own is to be sold for development. They do still owe creditors some of whom have taken stock back.
Expert:  Ben Jones replied 2 months ago.

Thanks. The issue with pursuing the administrators is that all they are doing is following a strict order in which they have to pay off the company’s creditors. Employees rank a few tiers down and before you are allowed to get any money from the company’s assets, several other parties must be repaid in full and you only get money if there is anything left over.

The administrators will have a legal duty to follow the order of repayment so if you have not been given the money you are due then the chances are that this is because there simply is not enough to satisfy your debts. After all the reason a company becomes insolvent is because it is unable to pay its debts so there is clearly not enough money to even keep it going. That does mean that often the creditors of the company, including its employees, will not get the full amount they are owed, or anything at all. No one is to blame for this, it is just how businesses end up from time to time - it is nothing new.

So unless you have evidence that the administrators are holding back funds when you are supposed to be the next in line for a pay out, then it is somewhat pointless pursuing them. The fact they have not informed you or communicated with you is not really anything you can claim against them for and the only thing would be if they have paid all creditors above you in full, they have money left which is now due to you and they have unreasonably or illegally withheld it. If that is not the case, there is unlikely to be a claim and you will have to go through the Government’s compensation scheme.

I know it is natural to try and blame someone and to pursue them but you have to think whether there is actually grounds to do so in the first place.

I trust this has answered your query. Please take a second to leave a positive rating by selecting 3, 4 or 5 stars above - this is an important part of our process and recognises the time I have spent assisting you. If you still need me to clarify anything else, please reply on here and I will assist as best as I can. Thank you

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