What are my employee rights in company administration”?
If your employer has gone into administration what are your employment rights – (click here for a guide to administration)? Your rights will depend upon your employment status and the plans for the administration. If you are still employed: the administrator may take on your employment rights for a period and then choose to sell the business or close the business. He may also put it into a CVA (company voluntary arrangement). Generally speaking if an administrator employs you for more than two weeks he adopts your employment rights. These may then be transferred when the business is sold on – this is known as TUPE or transfer of an undertaking – employment rights. If the company goes into a CVA you may or may not retain your job. Your rights can be affected by a CVA. If you are a subcontractor, make sure that you contract with the company in administration. Generally speaking as an administrator he or she will have to pay this but won’t pay the arrears of payments you are owed.
