The administrators will have the opportunity to consult employee representatives about redundancies.
There are special arrangements for employees dismissed on the insolvency of their employer which guarantees a basic minimum of payments from the National Insurance Fund (NIF), administered by the Redundancy Payments Service in the Insolvency Service.
This covers redundancy and other contractual payments, within limits, and pays 80% of claims within 3 weeks. The payments are made from the National Insurance Fund under provisions contained in the Employment Rights Act 1996. All payments are subject to legal limits in both the period that they can be paid and the maximum weekly amount – currently £464.00 per week.
The statutory scheme does not cover payments due to self-employed contractors.
City Link employees should contact the administrators, Ernst and Young in the first instance.
Your rights if your employer is insolvent
from Announcements on GOV.UK https://www.gov.uk/government/news/city-link-in-administration-information-for-employees
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