City Link in Administration – Information for Employees

City Link in Administration – Information for Employees

Administrators for the delivery firm City Link have confirmed they anticipate a substantial number of redundancies in the coming days.

From: The Insolvency Service

First published: 29 December 2014

Last updated: 29 December 2014 , see all updates

Part of: Business and enterprise

 

Administrators for the delivery firm City Link have confirmed they anticipate a substantial number of redundancies in the coming days.

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 aims to pays 80% of claims within 3 weeks after the claim is received. 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 or agency workers.

City Link employees and contractors (as creditors) should contact the administrators, Ernst and Young in the first instance.

Agency workers should contact their respective agencies.

Your rights if your employer is insolvent

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