Monarch Airline in Administration: Employees left bereft
Some 2100 employees have been affected by the news that Monarch Airline was unable to secure a last minute deal with the Civil Aviation Authority and woke up this week to the news that the business was now being placed into administration.
The purpose of appointing an administrator is to promote (if possible) the rescue of the company as a going concern.
If this is not possible then clearly the staff will be made redundant. Given the employees are treated as unsecured creditors, it is often the case with businesses in administration that there is not enough money to pay wages, notice pay and redundancy payments.
Thankfully in the UK we have an institution know as the National Insurance Fund (NIF) which guarantees that employees will receive basic debts subject to certain qualifying conditions. Unfortunately for Monarch staff this does not mean that this guarantees their full pay, as wages in arrears and notice pay is capped (subject to a maximum weekly sum) and enhanced contractual redundancy pay is not covered only statutory redundancy pay. That said, although a very uncertain time for Monarch employees who are all, no doubt, looking for alternative employment at this trying time, there is some comfort in the knowledge that they will receive some monies from the NIF whatever the employers fortune.
Posted on 10/04/2017 by Ortolan
