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Cycle to Work Scheme and administration/TUPE help

genericguygenericguy Posts: 6
edited February 2013 in Commuting general
First of all apologies for starting with a question but hoping a legal type will be able to answer a question for me.

I am on a cycle to work scheme with my employer. At the end of January the company went into administration.
I was paid my January salary (and will be paid for some of February) by the administrators.
Thankfully the part of the business I work in was bought, and my contract has been TUPEd over to the new company.
However the administrators have said a final lump sum payment will be deducted from my salary for the bike.
This will be a struggle financially for me and doesn't sound correct. As I understand it my contract was with my previous employers, not the administrators?
I am happy to continue paying for the bike in the same way but my new company has their own scheme.
Does anybody how this should work (the administrators seem fairly clueless so I don't expect them to know correct procedure).
Thanks in advance if anyone can advise.


  • fossyantfossyant Posts: 2,549
    Under TUPE you should transfer under the same terms, and that should include the cyclescheme if part way through, or an acceptable alternative should be offered.
  • Thanks. Apparently the administrators are trying to take the total sum remaining out of my final paypacket.
    New company has their own scheme but said they might be able to arrange a loan at their discretion :(
    In addition it looks like it won't be treated as salary sacrifice because they're taking it all.
    I know that I'm still a lot better off than a lot of my former colleagues but can't believe the administrators can just do this. They have been incompetent and generally useless from the start so suspect they're just making this up.
  • Guessing nobody can help with this?
    They have taken the full amount (no salary sacrifice), whilst this leaves me extremely short for the next month, I am at least not as stuffed as some of my former colleagues.
    Have heard form one of the people who was made redundant that they have not received any pay for the time before they were made redundant in February, and they will be getting chased for more on top.
    Given the administrators have not paid them (or given) any notice and have not paid any redundancy money I can't believe they are legally allowed to do this. Absolute scum :(
  • If I remember correctly (and I may be wrong) CtW schemes are not covered by TUPE, so any transfer of your loan is down to the good will of your new employer.

    For your colleagues, if a company goes bust the government will cover any unpaid redundancy up to the statutory minimum which is one weeks pay (capped at £430) for each full year. I am not sure how you claim that or if it is automatic
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