I work(ed) for a company with a significant UK presence. Our Canadian based business filed for Chapter 11 in the US and Canada and are in administration in the UK. However the global business has cash available of approximately $2.5 billion of which several hundred millions sits in the UK entity. Approx 400 UK workers to date have been dismissed by the administrators. The workers have received no redunandacy or notice pay and were not provided with any significant pre-notification and certainly not the 90 days which UK law insists upon. The administrators are claiming a loophole which allows them to claim "special circumstances". The company continues to trade and claims several recent significant wins. They have recently paid tens of millions of dollars to their executives in "retention bonuses" so the implication that meeting the rights of the workers to 90 days notice would imperil the business frankly does not wash. Besides to date, the administrators have refused to articulate exactly what their special circumstances are.
They advise us that we have only two methods of recompense.
1. Statutory via the RP!/2 process
2. Unsecured credit claims
Originally, when the business entered administration, the CEO assured UK workers that UK employment law would be respected.
I would be grateful for some learned advice as to whether we have recourse to seek our due renumeration, other than appeals to ET which have pre-limited outcomes?
In Administration but Still Trading
- 16-07-09, 06:57 PM #1OTSH
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In Administration but Still Trading
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