The company I work for has gone into receivership, how will this affect me and where do I stand?

Answer 1

your immediate salary / wages should be paid.. if not by the receiver/adminstrator but by the government. you may not get all the monies owed but you will get some. if you are a key employee (eg maintenance or have som especialist knowledge vital to keeping the assets protected then the receiver may choose to re-employ you and pay you whilst they attempt to resolve things.

effectively you are no longer employed, if a buyer can be found for the companies assets its possible they may wish to take on previous employees, they may not.. thats up to them. if they buy the company as a going concern IE its gone into receivership then its probable that the receiver thinks they can sell it to a third party. if it goes into liquidation then almost certainly its their assessment that the best they can do is sell off any assets to meet the debts.

the reciever isn't working for you, arguably they are 'merely' working for themselves (the more they can sell the business for the more they can cream off that amount as their fees. So resist any blandishments they may offer about working on at the company, for free natch, By all means if you have nothing better to do then be there.. you never know the company may be brought out of receivership by other parties, you may get your job back. But in the mean time start seriously looking for new employment..

you will get some form of benefits, but you really need to dust down that CV and start avidly job hunting.



one thing to be cautious of is what the receiver says.. its in his/their interests to placate existing staff, to keep them around so that they have a better chance of selling the business to a third party. so treat what they say with a poinch of salt.

Answer 2

Hi there may be no effect. The official receiver will evaluate the company and decide whether its a viable business if so the receiver will run the business untill a buyer can be found. In the mean time you will still be paid.

If the business is not viable then the company will be wound up. All the assets of the company will be cease and sold either at auction or by private tender then the money will be used to pay people unfortunately Tax and Vat are paid first, Then Creditors (suppliers) then employees, then customers Normally by the time it gets to employees there is little or no money left to pay people.

If you dont get paid by the company you are entiltled to a payment from the government.

Answer 3

You have a hard decision to make. Your wages from the date of receivership will be paid by the receiver if he retains you. Past wages are a priority debt but only up to a fairly small amount after that you are part of the unsecured creditors.

The company may survive but I think I would get out ASAP even if the receiver retains you.

Answer 4

It will not affect you much, you will still owe the money, receivers have a duty to collect debts. Chances are the company will be sold though in which case you will have the same debt but with a different effective lender.

Answer 5

That's bad news but I would start by seeking fresh employment, When it comes to hard cash you will be at the foot of the queue after all creditors have been paid, I reckon

Answer 6

on the street ?