Q&As

When a company is placed into administration, can the administrator access the job retention scheme?

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Produced in partnership with Emma Horner of 4 Stone Buildings
Published on LexisPSL on 07/04/2020

The following Restructuring & Insolvency Q&A produced in partnership with Emma Horner of 4 Stone Buildings provides comprehensive and up to date legal information covering:

  • When a company is placed into administration, can the administrator access the job retention scheme?

When a company is placed into administration, can the administrator access the job retention scheme?

It appears from the government guidance published on 26 March 2020 (the Guidance) that the administrator of a company which has been placed into administration will be able to access the coronavirus (COVID-19) (CJRS). The guidance explicitly states: ‘Where a company is being taken under the management of an administrator, the administrator will be able to access the CJRS. See Claim for your employee’s wages through the coronavirus job retention scheme.

In order to apply for the CJRS, the company in administration will need to have had their operations ‘severely affected by coronavirus (COVID-19)’. Provided that the company had created and started a pay as you earn payroll scheme by 28 February 2020, the

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