Appointing an Administrator

Posted in : How do I handle it NI on 16 April 2013
Patricia Rooney
Issues covered:

It has been suggested that the Company might appoint an administrator, with a view to selling the business. How will this affect our employees?

Patricia Rooney writes:

When appointed, an administrator acts as agent for the Company and for the benefit of all creditors. The administrator’s primary objective is to allow the Company to continue as a going concern.

As the administrator is the agent of the Company, employment contracts automatically continue. Once the administrator is appointed, he has 14 days in which to adopt contracts of employment. This means that if a contract is adopted by the administrator and continued beyond that 14 day period, the employees’ salary, together with

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This article is correct at 06/08/2015

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Patricia Rooney

The main content of this article was provided by Patricia Rooney. Contact telephone number is 028 9055 3300 or email

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