Your Employer Goes Into Administration. What Are Your Rights?
The recent news that British Steel has slipped into compulsory liquidation and appointed the Official Receiver to oversee and run the business has focused employees’ minds on the possibility that the company is wound up and redundancies follow. In those circumstances, what are the rights of the employees? If an employee has worked for the company for 2 or more full years (known as “continuous employment”), they are entitled to redundancy pay. The statutory minimum is:
- half a week’s pay for each full year the employee was under 22
- one week’s pay for each full year the employee was 22 or older, but under 41
- one and half week’s pay for each full year the employee was 41 or older.