Guidance

Carillion: information for employees, sub-contractors, creditors and suppliers

Update: 23 February 2018 - Information for employees, sub-contractors, creditors and suppliers of Carillion in liquidation

On 15 January 2018, winding up orders were made against Carillion Plc and associated companies. The court appointed the Official Receiver as the liquidator.

PwC has been appointed as special managers to assist the Official Receiver carry out his duties.

Update on Carillion’s contracts

The Official Receiver and special managers have determined with customers which contracts they wish to continue purchasing. The process now underway is to transfer these contracts to new providers.

Work has paused on all private and public construction sites, pending decisions as to how and if they will be restarted.

What contracts did the Government hold with Carillion?

Government contracts with Carillion include services for hospitals, schools, prisons and transport. Carillion delivered around 450 contracts with government, representing 38% of Carillion’s 2016 reported revenue.

Key central government contracts are held with Department for Education, Department for Health and Social Care, Ministry of Justice and Department for Transport. These are not the cause of the company’s present financial difficulties.

Further information

PwC have set-up a dedicated website and helpline: 0800 063 9282 to provide information for anyone affected.

Information for Carillion employees

Redundancies have been announced that will affect certain Carillion employees.

If you have been told that you are being made redundant, the information in this section provides advice about claiming money you’re owed and where you can seek support.

If you are going to be made redundant you will be told when your contract will end, and whether you will need to work during your notice period.

If you have not been made redundant, you should continue to go into work as normal and you will be paid for your work.

What to do if you’ve been dismissed

If you’ve been dismissed, you will receive a letter from PwC explaining that you may be able to make a claim to the Insolvency Service for redundancy pay and statutory notice pay.

You won’t be able to make a claim right away. PwC will let you know when you can do so. The reason for this delay is to allow PwC time to verify the company’s records and send required statutory information to the Redundancy Payments Service (RPS). Without this information, the RPS cannot make payments.

The amount the RPS can pay you will be subject to certain legal limits. If you are owed more redundancy and loss of notice pay than the legal limit, you will need to contact PwC to register as a creditor in the insolvency for any amounts you are owed above the limit. To register as a creditor you will need to complete a Proof of Debt form and email or post this to Official Receiver.

Any money you are owed by the company for wages/salary and overtime will paid to you through payroll in the usual way. Any money you are due for statutory holiday days you’ve accrued but not taken, will be paid to you through payroll in the usual way following your termination date.

Who is eligible?

You can to apply to the Insolvency Service for redundancy and other payments if:

  • you worked for these companies under an employment contract
  • you live in England, Scotland or Wales

If you live in Northern Ireland you will need to make you application through nidirect. Find out about your rights in Northern Ireland if your employer is insolvent.

Only individuals who were made redundant by their employer are eligible for redundancy payments. You cannot apply to the Redundancy Payments Service if you resigned from your position. We will seek to recover any money incorrectly paid to individuals who resigned from their position.

Workers and self-employed contractors who provided services to the company are not eligible to apply for redundancy. Instead, you will be a creditor in the liquidation and you will need to complete a proof of debt form and email or post this to Official Receiver.

How to apply for redundancy payments

You should not apply to us yet.

PwC will let you know when you can make a claim. At that time they will send you all the relevant information you need in order to do so.

By 23 February, all individuals with a leave date up to 15 February 2018 have been sent all the information they need in order to apply.

Going forward, all individuals will be sent information about how to apply within 7 days of their leaving date.

Once you have this information, you’ll be able to go online and submit your claim.

Please be aware that the information contained in your instructions is unique and must never be shared with others. Doing so may delay your application.

If you have received your application instructions and have not completed the online application we would encourage you to do so at your earliest convenience to ensure you receive any statutory amounts you are owed.

Paying your claim

We have established a specialist team spanning both the Redundancy Payments Service in the Insolvency Service and Carillion’s HR department to process these payments as quickly as possible.

As a result of the systems we have established to prioritise these payments we are aiming to pay your claim quicker than our agreed 14 day target.

However, sometimes we need to get additional information from you or from your former employer. This can take a bit of time.

We’ll contact you directly if we need anything from you.

Please do not contact us to check the status of your application until after the 14 days have passed. This will help us deal with everyone’s application as quickly as possible.

Getting help

If you need help or have any questions, please contact PwC on 0800 063 9282 or visit their dedicated website.

What about my pension?

Anyone worried about their pension situation can ring The Pension Advisory Service (TPAS) on 0300 123 1047 for free and impartial guidance.

TPAS has also set up a special helpline number for members of these pension schemes: 020 7630 2715. Those already receiving their pensions will continue to receive payment.

Where can I go for support?

JobCentre Plus, through its Rapid Response Service, is ready to support any employee affected by this announcement.

Support could include:

  • helping people facing redundancy to write CVs and find jobs
  • providing general information about benefits
  • helping people to find the right training and learn new skills
  • helping with costs like travel to work expenses.

In Scotland, redundancy support is provided through the Scottish Government’s Partnership Action for Continuing Employment (PACE) initiative.

The PACE Redundancy Helpline 0800 917 8000 is operated by Skills Development Scotland or help is available at www.redundancyscotland.co.uk.

Ffeithlen ddiswyddo a hawlio budd-daliadau (PDF, 288KB, 5 pages)

In Wales, the service is delivered by the ReAct scheme.

Redundancy and claiming benefits factsheet (PDF, 285KB, 5 pages)

I’m at risk of losing my job - can I claim benefits?

There is information available online to help you understand what benefits you can claim and provide you with further useful sources of help and support.

This information can be accessed online. If you don’t have access to a computer or the internet you can use these at a Jobcentre or library. Call 0800 771 234 to find out more.

What can I claim?

What benefits you can claim depends on where you live and your circumstances. You may be able to claim Universal Credit – www.gov.uk/universal-credit, Jobseeker’s Allowance – www.gov.uk/jobseekers-allowance, or other benefits.

If you are unsure what you can claim, you can use a benefit calculator – www.gov.uk/benefits-calculators.

What happens if I make a claim to benefit and when will I be paid?

Depending on what benefit you claim, you will usually need to attend an interview at your local jobcentre within a few days of the claim being made. They will be able to tell you when you can expect to receive your first payment.

If you claim Universal Credit it usually takes 5 to 6 weeks for a new claim to be assessed and your first payment to arrive. If you need help with your living costs while you wait for your first payment, you can apply for an advance - www.gov.uk/guidance/universal-credit-advances.

Can I make a claim before I am made redundant?

If you know that your employment is going to end on a specific date, you may be able to claim benefit in advance of this date.

For more information about what you can claim and how to make a claim go to www.gov.uk/benefits-calculators

I still have a contract but haven’t been paid anything. Can I claim benefits?

Yes. If you are under a contract of service with your employer and there is no work, or less work, available, you can make a claim based on your circumstances at the time of making that claim.

For more information go to www.gov.uk/benefits-calculators

I’m on a zero hours contract – can I claim anything?

You may be able to make a claim for benefit depending on the amount of work you get to do and the earnings you receive.

To find out more go to www.gov.uk/benefits-calculators .

I’ve been put on Short Time/ my hours (and wages) have been reduced. Can I claim benefits?

If you are put on short time working (STW) by your employer (working less days than usual), you can make a claim to benefits but what you can get will depend on either the number of hours you work and/or the earnings you get, along with your other personal circumstances.

If you can claim Universal Credit it will be worked out using the earnings you receive. If you need to claim Jobseeker’s Allowance you must not be working 16 hours or more per week on average or have earnings that exceed a set amount.

To find out more about the benefits you could claim go to www.gov.uk/benefits-calculators .

I’m self-employed – can I claim benefits?

You can make a claim but to work out if you can be paid anything you will be asked to provide details of your self-employment and the income you are receiving from it.

To find out more about the benefits you could claim go to www.gov.uk/benefits-calculators .

If you are able to claim Universal Credit you can find out more about how your self-employment is taken into account at www.gov.uk/self-employment-and-universal-credit

What if I’m already claiming Universal Credit or Jobseeker’s Allowance and my earnings go down or stop?

If you are claiming benefit and there is a change to your circumstances you should report the change straight away

If you are already claiming Universal Credit this would usually increase if your earnings are lower than they have been.

Jobcentre Plus is not responsible for the contents, advice or information provided or the reliability of listed websites. Websites are used at your sole risk. Information contained is correct at the time of publishing. Calls to the 0800 listed numbers are free from landlines and mobiles.

Further information

Redundancy and claiming benefits factsheet (PDF, 285KB, 5 pages)

Ffeithlen ddiswyddo a hawlio budd-daliadau (PDF, 288KB, 5 pages)

If you have any further questions, you can also contact the dedicated helpline: 0800 063 9282.

Information for apprentices

Work is on-going to ensure all apprentices on Carillion apprenticeships will not have their schemes disrupted.

Apprentices should continue to turn up for work for as normal and will be contacted should any arrangements have been changed.

If you are worried about your apprenticeship, The National Careers Service provides free, up to date and impartial information, advice and guidance on careers, skills and the labour market in England.

For more information, visit The National Careers Service or call a professional careers adviser on 0800 100 900 (8 am to 10pm daily).

If you are resident in Scotland and worried about your apprenticeship, call the PACE Redundancy Helpline on 0800 917 8000 or log on to www.redundancyscotland.co.uk.

Information for sub-contractors

Will I get paid for the work I have done for Carillion?

Goods and services supplied with the Official Receiver’s agreement following the liquidation of Carillion will be paid in full.

Subcontractors and suppliers who are owed money for work undertaken for Carillion prior to its liquidation are unsecured creditors and will need to lodge a claim with the Official Receiver. A letter will be sent to suppliers shortly containing further instructions. It is to early to say if there will be any payments made.

Am I employed directly by Carillion?

Self-employed contractors and agency workers who provide services to the companies are not employed directly by Carillion. This means different procedures will apply to you regarding continuation of your contract or seeking redress should your employment have stopped.

Work has paused, however, on all construction sites, pending decisions as to how and if they will be restarted.

Should I return to work?

You should have been contacted by your usual operational point and if you have been asked to return to work, you will be paid for your services.

If you are unsure whether your contracts are continuing, you should call your usual operational points of contact in the Group and visit the website www.pwc.co.uk/carillion.

Am I entitled to the same benefits paid to Carillion staff?

Self-employed contractors and agency workers are not eligible to apply for redundancy payments should your contract have ceased.

I’m an employer and may have to make people redundant – is there any advice available?

Yes. The ACAS website has a useful information document at www.acas.org.uk/media/pdf/1/1/Redundancy-handling-accessible-version.pdf

Information for creditors

You will need to register as a creditor in the liquidation if:

  • you haven’t been paid for goods or services you’ve supplied to the Carillion companies in liquidation
  • you have paid these companies for goods or services that you haven’t received
  • you have been made redundant by a Carillion company in liquidation and are owed more redundancy pay or statutory notice pay than the legal limits you can claim from the Redundancy Payments Service

To register as a creditor you will need to complete a Proof of Debt form which you should then email to the liquidator.

Once you have registered and the Official Receiver receives your proof of debt form they will add you to the list of creditors and include you on future correspondence about the case.

Information for suppliers

The Special Managers are endeavouring to pay suppliers for ongoing good and services supplied since the date of the liquidation within 30 days of invoicing. The Special Mangers appreciate the cooperation of suppliers in relation to the invoicing guidance shown below. This will assist the Special Managers in facilitating payments within 30 days. Further information is available on the PwC website.

Information for shareholders

Carillion PLC’s listing with the London Stock Exchange has been suspended. At the present time Carillion shares cannot be traded on the exchange.

The Special Managers are considering whether or not Carillion’s listing will ultimately be cancelled and its shares de-listed as part of that process.

Unfortunately, as a result of the liquidation appointments, there is no prospect of a return to Carillion’s shareholders.

In addition, shareholders should seek professional advice if they want to dispose of their shares and be aware of potential scams in the form of third parties offering to dispose of their shares, in exchange for the up-front payment of fees.

Shareholders should be aware of any approaches in the form of third parties offering to dispose of their shares, in exchange for the up-front payment of fees. The FCA website has information about how to avoid and report share scams.

Companies involved in the liquidation

  • Carillion Plc, company number 03782379
  • Carillion Construction Ltd, company number 00594581
  • Carillion Services Ltd, company number 02684154
  • Planned Maintenance Engineering Ltd, company number 00737307
  • Carillion Integrated Services Ltd, company number 03679838
  • Carillion Services 2006 Ltd, company number 03011791
  • Carillion Utility Services Limited, company number 00728599
  • Carillion AM Government Limited, company number 00885404
  • Carillion Fleet Management, company number 00537677
  • Everprime Limited, company number 02840336
  • Postworth Limited, company number 02508579
  • Carillion Specialist Services, company number 02574792
  • TPS Consult Limited, company number 02574820
  • Sovereign Hospital Services Limited, company number 03232308
  • Carillion Energy Services Limited, company number 03858865
  • Carillion Asset Management Limited, company number 01122808
  • Carillion LGS Limited, company number 03198709
  • Carillion Holdings Limited, company number 03783019
  • Carillion JM Limited, company number 00077628
  • Sovereign Consultancy Services Limited, company number 00680231
  • Schal International Management Ltd, company number 02646690
  • Carillion Professional Services Limited, company number 02916489
  • PME Partnerships Limited, company number 03902730
  • PME Technical Services Limited, company number 00531085
  • Carillion Project Investments Limited, company number 01417540
  • Carillion Property Services Limited, company number 04322876
  • Dudley Bower Group PLC, company 00566465

On 19 January 2018 PwC were appointed provisional liquidator of Carillion (AMBS) Limited (company number SC020258).

Published 25 January 2018
Last updated 27 February 2018 + show all updates
  1. Updated redundancy and claiming benefits factsheets added in English and Welsh.
  2. Updated list of the companies in the liquidation added.
  3. Factsheet for Carillion employees about how to make a claim for statutory redundancy payments added.
  4. Information added about how to submit a claim as a creditor when you are owed more redundancy pay or statutory notice pay than the legal limits you can claim from the Redundancy Payments Service.
  5. Information for shareholders added.
  6. Updated payment information for suppliers.
  7. First published.