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  • Company in administration – what does this mean…..
  • Kryton57
    Full Member

    ….for my wifes job, and also the fact she’s 2 months away from Maternity…?

    thekingisdead
    Free Member

    I beleive its a formal process whereby a blood sucking accountant will come in, and go through theprocess of winding up the business, dealing with creditors etc.

    Unfortunately I don’t think its great for your wife’s impending maternity.

    wwaswas
    Full Member

    if the company is in adminstration she’ll probably get statutory redundancy.

    if it were a CVA type thing she may be re-employed as this is usually a way for a company to walk away from old debts. Administration means the company will be dissolved.

    Possible she coudl be taken on if the assets were sold to a 3rd party who wanted to cherry pick staff but she would be signing a new contract with a new company so would only get statutory maternity leave.

    I’d suggest she contact a local CAB for the full run down on her rights etc asap.

    Lastly, not where either of you want to be this close to having a baby so you have my sympathy.

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    craigxxl
    Free Member

    As a blood sucking accountant her SMP is covered but may get delayed along with her redundancy. This will be paid by DSS but could take up 6 weeks. The insolvency practice will collect and liquidate all assets into cash and settle the creditors with the proceeds. Staff wages are protected so if the have cash the wages will be paid from that if not then it will be the DSS that settles it. Contact the company for the insolvency accountants details and get in touch with them and they’ll be able to let you know how it will be paid

    Kryton57
    Full Member

    Cheers WWW (the new bike question has now been solved eh?)

    She works for a joint venture so its possible the other half of the company would offer her a position I guess, as the JV still needs to work for thier ultimate client.

    wwaswas
    Full Member

    the new bike question has now been solved eh?

    🙁

    Good job you didn’t hit ‘buy’ yesterday, really.

    If there’s a job that needs doing and she is a good person to do it then I can see her being looked at by the other partner.

    I can say this because I’m not looking to employ her but the impending maternity leave might be an issue if they’re looking for continuity on the project?

    project
    Free Member

    She may well be told she is being made redundant today or the next few days,and the company either sold, or closed down, its then up to the new owners wether they take on the old staff, or just want the assets,if that happens she shouldnt get maternity as she no longer works for the comapny as its failed, unless somebody else takes it over and they take her on.

    Check out the redundancy service to see the amounts the governmnet office will eventually pay out.

    Its not anice position to be in, but thats how things happen now sadly.

    rootes1
    Full Member

    depends…

    company I worked for operated under administration for 2 years as underlying profitably was good so administrator managed the debts but kept the compnay running..

    this is the purpose of administration – keep the creditors happy and try to rescue the business as a going concern…

Viewing 8 posts - 1 through 8 (of 8 total)

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