Yes. If your company is currently struggling to pay the wages but is ultimately viable placing the it into administration may be recommended as means of saving profitable elements of the business as well as protecting jobs.
In more detail
If your company goes into administration a licensed insolvency practitioner will be appointed to handle the company’s affairs. Any employees’ contracts retained past the first 14 days of the administration will become adopted by the administrators.
If the business is eventually sold through an administration procedure employees’ existing contacts will be transferred over to the new company under Transfer of Undertakings (Protection of Employment) or TUPE regulations. The new company will become responsible for arrears of wages as well as for preserving existing employment terms and conditions.
If your business is experiencing cashflow difficulties you should speak to us immediately – our experts can help you to find a solution. Contact us today on 0800 254 5494