Company administration

[Ferri]

My employer has taken the steps of going into administration. They have kept same name but changed the registration number. Then they made us redundant and then gave us a contract which gives a weeks notice to terminate employment. They have now started paying people off again. Is this legal and what rights do I have. I am a loyal staff member who sold in the region of 12 million in property within a 3 year period. They have basically dumped debts and have started up again leaving creditors and their customers in a sorry state. And if anyone wants a hard working sales exec here I am....

[buildersmate]

I guess that you are in estate agency.
The technical answers to your question are:
1) The company would have to change its legal name and it then gets a new company number. However if it has a trading name which is different, there is nothing to stop the new company using it.
2) If you have been made redundant, then you must have been paid for your notice period plus statutory redundancy amounts (as a minimum). That, I'm afraid, is the limit of the old companies legal obligation to you.
3) If you have been offered a new contract with a new employer (legally this is the case), unless the contract states more notice, you would be on one week's notice until you have completed 2 years continuous employment.
It's pretty immoral, but probably not illegal.

[Margaret007]

Unfortunately this happens again and again, Companies being dumped and reopened next day.

Is the entity registered under Company Law as a 'Limited Company� if so, they cannot start trading again under the same name.

DTI might be interested in the Directors of the Company, How many companies have these individuals dumped and then started up doing the same thing.

I am assuming it is a Company as you say they are in Administration. I thought Administration (not Liquidation) meant that the company was seen as a viable enterprise and would continue trading until a full evaluation of their financial position was found. An Administration order should mean that all directors were removed from premises. Do you still have the same bosses? If so, a note to DTI could help.

If a Company closes because they cannot pay there creditors. All Staff are normally paid off with the regulation Government Redundancy pay. Did you receive this as you stated.

I know a lot of Q, But strange if an Administration Order is in place and your bosses are still there?

[Ferri]

Thanks for your responses. The company name has stayed the same. The company registration number has changed and they seemed to have swaped the debts over to another name. The directors remain the same although I understand there is a new director on board. One of the directors has been involved in 8 dissolved companies so seems to be making a career out of it. The contract is a bit ambiguous.... I now seem to have lost the term of service I served and am now under the Newco with one weeks notice of termination. I am apparently getting redundancy but this would amount to around 3 weeks pay. I am watching others under newco being paid off and wondered if I was next as a lot of facts dont not stack up. I understand that the oldco need to transfer the staff to newco but do not have any obligation to keep staff on if they don't want to. It's unbelieavable that this is allowed and that people are being treated like this. My salary was cut around �4,000 and is not acceptable. It is unfortunate that companies find themselves in debt it's not that that is the real problem it's the underhand way that they are going around things and I feel pretty upset for the fact that I was so loyal and never let them down. 12 million is a lot of money to make a company there are others who did the same. Where's all the money gone. And why are the staff having to suffer at the hands of them all.

The comapny is currently registered under a different address so thats same name different address different company registration and same directors.

I will check out the DTI thankyou if you have any further help or comments it would be greatly appreciated.

I think I am currently employed on a business being sold as a going concern but cannot confirm that. But I expect that this is the only reason I am still in a seat.