Question

To ask the Secretary of State for Business, Innovation and Skills, when his Department was first made aware that there would be insufficient funds from the administration of Citylink to pay statutory redundancy payments to that company's former employees.

The Department for Business, Innovation and Skills was notified of the impending administration of City Link Limited on 23 December 2014.

It is typical that an insolvent company has insufficient money to pay their creditors in full (including employees). This is why there are special arrangements for employees who are made redundant under the insolvency provisions of the Employment Rights Act 1996 to ensure that they receive a basic minimum of the debts owed by the employer from the National Insurance Fund.