Resignation during a period of uncertainty

[Chandler Ford]

Hello,

So, our company is an SME, IT Services Company, and is in the process of calling in the administrators (next week 14 Dec 2011) to 'potentially' dissolve the business. When the final decision is made we are all facing lay off and those of us eligible for severance pay will be applying for statutory redundancy.

I'm personally on 4 weeks’ notice and am fortunate enough to have already been offered a new job starting 09 Jan.

So my question is, if I hand in my notice today (last possible day to make up 4 weeks’ notice) and the company does in fact go into administration will I still be eligible to claim for redundancy even if I have already given in my notice?

 

[Charlie B ACS]

I don't believe you will, as the Administrator, whose duty is to minimise costs, will see the saving on redundancy costs, by allowing your notice to expire.

 

[InBetweener]

Hello,

So, our company is an SME, IT Services Company, and is in the process of calling in the administrators (next week 14 Dec 2011) to 'potentially' dissolve the business. When the final decision is made we are all facing lay off and those of us eligible for severance pay will be applying for statutory redundancy.

I'm personally on 4 weeks’ notice and am fortunate enough to have already been offered a new job starting 09 Jan.

So my question is, if I hand in my notice today (last possible day to make up 4 weeks’ notice) and the company does in fact go into administration will I still be eligible to claim for redundancy even if I have already given in my notice?

Luckily for you I was in the exact same position. If you resign now, you will not receive your redundancy. Remember, that you will have to wait up to 10 weeks to receive your redundancy pay, as this is how long it takes to get it claimed back. Many of my ex colleague waited this long to be paid. The administrators will give you all the relevant forms. Depending on your position within the company you MAY be asked by the administrators to remain behind and assist them finalise certain things. This may be for 2-4 weeks, or even more. They will only pay your a maximum amount per week (£400 if im correct).

I resigned before being made redundant, because I knew that by resigning they would have to pay me at the end of the month and my monthly pay was more than my redundancy. I was actually pulled into the board room by the CEO and administrators and told face to face that I could either leave or be made redundant. I resigned on the spot, and was paid at the end of the month, whilst everyone else was still moaning and chasing their redundancy pay.

You have a choice. Hope you are made redundant in time for your new job, or cut your losses and resign in order to start your new job on time. You cannot resign and expect to be paid redundancy, unless it has been clearly stated by your company that this is what happening. Then and only then will they possibly make you redundant and permit you to leave early.

 

[Chandler Ford]

Many thanks for your responses.

The position I hold is IT Manager and oddly enough, the only IT body left. Which means it's posisble the administrator/s may well like to keep me on for a week or so to tie things over e.g. passwords, handover, network security, closure etc.

Decisions, decisions...

I think, that based on your experiences, the beast idea is to hand in my resignation and cut my losses. Wouldn't fancy a) being kept on post 09 Jan b) waiting weeks on end for any redundancy x 4 weeks.

 

[InBetweener]

Many thanks for your responses.

The position I hold is IT Manager and oddly enough, the only IT body left. Which means it's posisble the administrator/s may well like to keep me on for a week or so to tie things over e.g. passwords, handover, network security, closure etc.

Decisions, decisions...

I think, that based on your experiences, the beast idea is to hand in my resignation and cut my losses. Wouldn't fancy a) being kept on post 09 Jan b) waiting weeks on end for any redundancy x 4 weeks.

When employed by the administrators you will only be employed on a temporary contract and they can get rid of you at any time. Your own contract does not come into affect. And to be honest you wouldnt want to help anyone especially a company that has made you redundant. Thats the way I thought about it. Why should I help them!?!

Unless your redundancy is worth alot of money, personally, I would cut your losses get your resignation pay and look forward to a new job in a more secure company. But be warned if you resign and your company goes bust, you may not get any money at all, and may have to claim it from the administrators which will take a lifetime.

I was lucky enough to work closely with my CEO, who agreed to pay me, even though the company was going into administration.

 

[IANL]

Hello,

So, our company is an SME, IT Services Company, and is in the process of calling in the administrators (next week 14 Dec 2011) to 'potentially' dissolve the business. When the final decision is made we are all facing lay off and those of us eligible for severance pay will be applying for statutory redundancy.

I'm personally on 4 weeks’ notice and am fortunate enough to have already been offered a new job starting 09 Jan.

So my question is, if I hand in my notice today (last possible day to make up 4 weeks’ notice) and the company does in fact go into administration will I still be eligible to claim for redundancy even if I have already given in my notice?

How can you claim for redundancy when you have resigned.:| Think about it. You've resigned!!!! and not been made redundant

 

[Charlie B ACS]

When employed by the administrators you will only be employed on a temporary contract and they can get rid of you at any time. Your own contract does not come into affect.

Not true, if they keep you on you remain employed by the company. If they then make you redundant your entire term of service is taken into consideration when calculating redundancy.

 

[Alan R Price]

Not true, if they keep you on you remain employed by the company. If they then make you redundant your entire term of service is taken into consideration when calculating redundancy.

Thanks, Charlie, that's correct. Administration does not affect an employment contract and if OP resigns he will forgo any right to redundancy payment. If the administrators make him redundant he will retain all his statutory rights as an employee, including any potential TUPE claims.

 

[Chandler Ford]

Thank you all again. You've been very helpful.

Finally received more information -

Employer is definitely going into administation. But they are taking their sweet time! I am turning up to work every day to make sure I don't lose out on any rights but they are NOT going to pay me this month!

Reason it's taking a long time is because we have ties with another 'surviving' business. And until that is all sorted my employer cannot officially start the winding up/ administation process. Which means a) I am not going to be paid by my current employer b) I won't receive redundancy/ relief for weeks, maybe even months.

Where to go next, CAB?

 

[Alan R Price]

Thank you all again. You've been very helpful.

Finally received more information -

Employer is definitely going into administation. But they are taking their sweet time! I am turning up to work every day to make sure I don't lose out on any rights but they are NOT going to pay me this month!

Reason it's taking a long time is because we have ties with another 'surviving' business. And until that is all sorted my employer cannot officially start the winding up/ administation process. Which means a) I am not going to be paid by my current employer b) I won't receive redundancy/ relief for weeks, maybe even months.

Where to go next, CAB?

It's a difficult one. If your employer has said it is not going to pay you, you probably have a right to withdraw your labour (but I am not an employment specialist so you need further advice) however there may be negotiations going on the try to save the business which could end up with your job being saved. If the staff were to walk out it might lead to any sale negotiations falling through.

Paying as visit to the CAB is probably a good move.

 

[Chandler Ford]

It's a difficult one. If your employer has said it is not going to pay you, you probably have a right to withdraw your labour (but I am not an employment specialist so you need further advice) however there may be negotiations going on the try to save the business which could end up with your job being saved. If the staff were to walk out it might lead to any sale negotiations falling through.

Paying as visit to the CAB is probably a good move.

It is tricky. They have indeed said they will not pay us. It's all up to the administrators. And by word of our accountant - they won't pay anyone either.

I hasten to add it is highly unlikely the business will be saved. The only reason I am here is because I am helping the other company that is surviving.

Thanks again.

CAB here I go...