company administration = no wages

[ketchupkid]

hi the company i work for has recently closed down and although its not official they look like they are going to go into administration. it is quite a big and well known company. this is the third time i have been through this particular store going into administration during the two years i have worked there but this time i doubt there will be another company willing to save us. however what is different this time is that when the head office told us to close the shop they also just happened to mention (the day before we were supposed to get paid) that we wouldn't get paid this months wages because they dont have the finances. are they legally allowed to do this? its seems very unfair as i cant imagine that the company going bust has come as a complete suprise to head office, they must have known or at least had an idea yet they let us carry on working knowing they wouldnt pay us at the end of the month. the past couple of weeks we have only been allowed to do cash transactions and there is easily enough money in the shop safe to pay everyone's wages yet i doubt we'll see any of it, is there anything we can do? thanks for any help

[WendyS]

I wonder if you work for Kwik Save? I've read of their financial problems. Whatever company it is, one can only be sympathetic for your situation. Unfortunately if they don't have enough money in their bank account to pay your wages there is little they, or you can do about it as if the company has a history of financial difficulties the bank has obviously reached the stage whey they will not extend their overdraft. If a rescuing purchaser comes out of the woodwork you might be lucky and get paid the money owing (possibly in stages) at a later date.. But small retailers are really struggling at the moment and even if the company is rescued the long term prospects may not be very secure so probably your best option is to look around for another job now. Also, if you have been employed there for over 2 years and were paying into a company pension scheme, you will not be able to get any contributions back if you leave, so check and make sure your pension fund is securely ring-fenced and still secure. The best person to ask is your HR Department. If you have a mortgage, I would also contact your mortgage provider, explain your situation and ask what options might be available to you if you lost your job and needed some flexibility on mortgage payments short-term.

[themas]

If the employer becomes insolvent then a receiver or liquidator should be appointed and - through that firm/person - you would be able to claim unpaid wages and other money owing to you (statutory redundancy pay etc.) from the National Insurance Fund.

The problem is this is going to take some time. You have to wait for the receiver etc. to be appointed & he/she should then contact you & all other employees & tell you how to claim & what you can claim for.

[Markandshez]

From the look of it Kwik Save will go into Administration- different from Receivership. The Administrators of the company will take over the running of the business. If they do decide to make the company bust, then the receivers will be called in. Do not be tempted to take money from the till as this is theft and cannot bus used for paying staff unless the company has paid off its main creditor- UNcle Gordon at No 10. The government must be paid first, followed by the staff and other creditors