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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 68212
Experience:  Qualified Solicitor
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I have been made redundant recently together with my whole

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Good morning. I have been made redundant recently together with my whole store team as a result of the company I worked for going into administration. We have not been consulted prior to finding out that we no longer have a job from an online newspaper article in The Sun. We have later that day received a message from the company on internal website about going to administration and our store closure. A letter came in a post a week later from the administrator informing that we have been made redundant as of 9 days ago. The letter was not even addressed to me personally but to "Dear All". Place of my work, as the particular store was not mentioned either. I have called and emailed the appointed administrator with many questions we have and informing that we intend to take the fact that there wa no consultation with employees before proceding with redundancies to the employment tribunal. I have not received a response for over a week now. My questions are:
JA: Have you discussed the termination with a manager or HR? Or with a lawyer?
Customer: sorry I sent before finishing the message. Do we have grounds to raise the dispute with employment tribunal?
JA: What is your employment status? Are you an employee, freelancer, consultant or contractor? Do you belong to a union?
Customer: I am an employee, or I was. It is a big international clothing company. No, I haven`t discussed the termination with HR or a manager and since we got the news we were told we cannot contact HR department anymore, ony the appointed administrator.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No.

Hello, I’m Ben, a UK lawyer and will be dealing with your case today. I may also need to ask some questions to determine the legal position.

How long have you worked there for? Please note this is not always an instant service so I may not be able to reply immediately. Rest assured that I am dealing with your query and will get back to you the same day. Thanks

Customer: replied 13 days ago.
Hello Ben, I have worked there for 5 Years.
Customer: replied 13 days ago.
File attached (TMQS5QZ)
Customer: replied 13 days ago.
This is copy of the email I have sent to the appointed administrator, there is a lot of details of the case in there.

Many thanks for your patience. Whilst you can consider a claim for unfair dismissal due to lack of a fair procedure and lack of consultation, the issue is that claiming against the company may be pointless considering they are insolvent.

Firstly, the tribunal could block a legal claim against a company in administration to allow the insolvency process to be completed without such distractions. Once a claim is allowed to proceed there may no longer be a company to pursue or money to satisfy a prospective claim.

Really, you should only be concentrating on the money you are due as a result of the redundancy, rather than going for more for the unfairness, which is unlikely to get anywhere.

When an employer becomes insolvent, its employees could be immediately affected as they may not be paid what they are due under wages, holidays, redundancy, etc. and creates a rather uncertain and stressful situation.

Whilst an employee can issue and pursue legal proceedings against the employer to try and recover what is owed, often such action would be pointless as they are unlikely to have the money or assets to satisfy such a claim, even if the employee wins.

In terms of trying to take this further, the first step would be to contact the company’s insolvency practitioners (administrator, liquidator, etc.) to ensure the employee is known to them as a creditor of the company and to check if it is likely for any money or assets to become available for distribution amongst the company's creditors.

If it appears unlikely that the company will have the money or assets to pay, employees can try and rely on the protection they get from the Government, which can cover the following payments:

{C}· Up to 8 weeks' arrears of pay (capped) less basic rate tax and NI contributions.

{C}· Up to 6 weeks' holiday pay (capped) which accrued in the 12 month period ending on the date of the insolvency, less basic rate tax and NI contributions.

{C}· Statutory notice pay (capped) less basic rate tax.

{C}· Statutory redundancy payment less any amount already paid by the employer

Any claims in excess of the above limits should be claimed from the insolvent employer in the usual ways addressed above, such as through the insolvency practitioner or through court.

To be able to claim from the Government, the following conditions must be met:

{C}· Only employees can claim, therefore the self-employed, agency workers, etc are not covered

{C}· The employer must have been made officially insolvent

{C}· The employee’s employment must have been terminated

Contact the Redundancy Payments Service on 0330(###) ###-####for further assistance on how to initiate your claim.

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Customer: replied 13 days ago.
Thank you very much for your help Ben. Have a good day.

All the best