If your company goes into administration: your rights, your pay and your next job

Poundland has filed a notice of intention to appoint administrators, which protects it from its creditors until Thursday 12 November, as reported by BBC News on 4 November 2026. Its US owner, Gordon Brothers, rejected a bid from Martin Property Group that could have saved the 12,000 jobs, and a second offer came from Xyra Group on 5 November. The Business Secretary met the owners, who committed to prioritise bids that protect workers and stores, and MPs have called them in for questioning on Wednesday 11 November.

Nothing is decided yet: the chain could be sold whole, sold in parts, or go into administration. If you work there, or anywhere your company goes into administration, the rules below are the ones that apply.

Administration is one of several types of insolvency, alongside liquidation, receivership and company voluntary arrangements. An insolvency practitioner (the administrator) takes control and tries to rescue the business or sell it. For employees, gov.uk sets out three possible outcomes:

• You are asked to keep working. You are paid for the work you do. If you are made redundant later, you can still claim redundancy pay and other money you are owed, but not wages or holiday owed between the date of the insolvency and the date you were dismissed.
• You are transferred to a new employer because the business, or part of it, has been sold. See the TUPE section below.
• You are made redundant. The administrator must tell you how your job is affected and what to do next, and give you an RP1 fact sheet and a CN (case reference) number.

If your employer cannot pay what it owes you, the Redundancy Payments Service pays part of it from the National Insurance Fund. Every payment is capped at £751 a week (£719 if you were made redundant before 6 April 2026).

Wages and holiday pay are taxed and carry National Insurance. You are only paid what your contract and the employer's records show. Missing pension contributions are claimed from the insolvency practitioner, not through the same form.

1. Get your CN number from the administrator. You cannot claim without it.
2. Apply online for redundancy pay, unpaid wages and holiday pay as soon as you are made redundant, and no later than 6 months after you were dismissed. In the same form, say yes to statutory notice pay.
3. Claim benefits straight away if you need them. Benefits you could have claimed are deducted from your notice pay even if you did not claim them.
4. Wait for the LN number for your notice pay. It is sent after your notice period would have ended, usually within 12 weeks.
5. Expect around 6 weeks for payment. If a claim is rejected, the Redundancy Payments Service explains why, and you can take it to an employment tribunal, within its time limit.

You can only claim if you were an employee and are a UK or EEA national, or have permission to work in the UK. Contractors register as creditors instead. These are the gov.uk rules for England, Scotland and Wales; employment law is devolved in Northern Ireland, so check nidirect if you work there.

When an insolvent business is rescued and taken over, TUPE (the Transfer of Undertakings regulations) normally applies. Your job moves to the new owner with your terms and conditions and your original start date, so your years of service still count for redundancy pay and notice later. When the business is closing down, TUPE is unlikely to protect you.

There are two differences from a normal transfer. A new owner can change pay and other terms after an insolvent transfer if it prevents job losses, agreed with employee or union representatives and never below the minimum wage. And if you refuse to transfer, it counts as resigning: you would not normally get redundancy pay.

You do not have to wait for a letter to start looking. Updating your CV while you are still employed costs nothing and gives you a head start on colleagues who will apply for the same local roles.

• Write the CV for the job you want next, not the one you have. Retail and warehouse experience is wanted right now: our guide to Christmas temp jobs lists who is hiring and what they pay.
• Lead with results. Store targets met, stock accuracy, staff you trained, shifts you covered. Our guide to CV skills shows how to turn daily tasks into lines a recruiter reads.
• Do not hide the reason you are leaving. "My employer went into administration" is a reason every recruiter understands. Say it in one sentence in your cover letter or at interview, then move on to what you bring.
• Use the help on offer. Jobcentre Plus runs a Rapid Response Service for up to 13 weeks after you are made redundant, once your notice period has started.
• Prepare for quick interviews. Seasonal and retail employers often decide in one short meeting. Our guide on how to prepare for an interview covers the questions that come up.