LRD guides and handbook November 2019

Redundancy law - a guide for union reps

Chapter 2

The appointment of administrators

[ch 2: page 23]

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.