What happens to redundancy pay when a company goes into administration?

Iconic British fashion retailer Ted Baker, once a symbol of excellence in the fashion industry, has recently faced a stark reality—administration. This process, often a last resort for struggling businesses, brings significant consequences, particularly for employees who find themselves at the mercy of financial restructuring.

When a company enters administration with little to no funds to pay its staff redundancy packages, the situation becomes even more dire. What complexities arise when a firm lacks the financial resources to fulfil its obligations to its workforce and creditors?

Featuring in People Management, Employment Partner Emma Gross has written an article outlining what happens to redundancy pay when a company goes into administration.

Read the full article here: What happens to redundancy pay when a company is financially distressed? | People Management