The appointment of administrators

Where an employer is in financial difficulty and administrators have been appointed, the administrators are under the same statutory duty to inform and consult with employee representatives as the original employer.

If the administrators fail to consult, they will be liable for a protective award which is paid by the Redundancy Payments Office (see Chapter 9). In practice, this means that some, if not all of it will be lost, since it is classed as “wages” and subject to a cap.