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Ben Jones
Ben Jones, Solicitor
Category: UK Employment Law
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Experience:  Expert in UK Employment Law
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My daughters company has gone into administration and the administrator

Resolved Question:

My daughters company has gone into administration and the administrator has transferred her employment contract to their holding company, does she continue you to work at the company in administration?
Submitted: 10 months ago.
Category: UK Employment Law
Expert:  Ben Jones replied 10 months ago.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. Is the holding company going to continue the business for the time being?

Customer:

It looks as if they are, as they are trying to sell it off but all funding e.g. Fuel cards, hotels etc are not currently being paid for. there has been no comms bar a letter to say in administration, and her contract has been transferred.... So should she still go to work? Does that help?

Customer:

Are you there?

Ben Jones :

It is likely that if the holding company has taken over the old company as a going concern and with a view to continuing its operation, perhaps until a new buyer is found, then the employees would transfer under a law known as TUPE. It means their contracts automatically transfer to that company and they have to take them on preserving their contractual terms and conditions. If she refuses to go into work then it could be seen as a refusal to transfer, which amounts to a resignation.

Customer:

OK but for TUPE there is normally consultation nothing has been said bar leaving a letter on her and others desks?

Customer:

So is there a commitment to pay her salary at the end of the month, so she does need to go to work?

Ben Jones :

In normal situations, yes, there is consultation, but there is a defence to not holding consultation, for example if it was not reasonably practicable to do so. Let's say the administrators were called in and had to take immediate measures to deal with the failing business, including a transfer to their holding company - the priority is to ensure the administration is dealt with so consultation may have to take a back seat.

Ben Jones :

commitment to pay salary for when?

Customer:

Her last pay day was 25/9 and the TUPE happened yesterday so there is already a difference from then to yesterday and until the 25th of Oct. So if she works will they pay her?

Customer:

Understood on the consultation i.e. get it sold asap all other stuff later

Ben Jones :

if she continues to work then yes she should be paid. If for some reason the business fails, there is no buyer,money or assets, then she can recover some of that money from the Government

Customer:

Thank you at least she knows. on a last note money from government via DWP? Just worried about her flat and payment?

Ben Jones :

do you mean the money she is owed or money in the meantime?

Customer:

Just that she will receive salary on 25/10 :(

Ben Jones :

but she is paid monthly?

Customer:

yes .... Is there anyway to protect against on the 24th they say she will not be paid

Ben Jones :

if it is just a short term delay then it may not be covered by benefits as applications take a while to process. She can't apply now as she is still technically employed and due to be paid.

Customer:

OK thanks for the support worth the money :)

Ben Jones :

You are most welcome. Please take a second to leave a positive rating for the advice I have provided as that is an important part of our process. Thank you and all the best

Ben Jones, Solicitor
Satisfied Customers: 38580
Experience: Expert in UK Employment Law
Ben Jones and other UK Employment Law Specialists are ready to help you

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