pureLiFi, the Edinburgh-founded company that pioneered light fidelity technology as an alternative to conventional Wi-Fi, has entered administration and ceased trading, with 42 employees facing redundancy. The company had been developing technology that uses visible light and infrared to transmit data at high speed, and had attracted significant interest from the telecoms and defence sectors.
42
Jobs lost in administration
The firm was unable to secure the additional investment it needed to continue funding its research and development programme. Administrators have been appointed and will now seek to wind down the business or find a buyer for its assets, which are likely to include a substantial portfolio of intellectual property.
pureLiFi had been regarded as a globally significant player in next-generation wireless technology, having spun out of the University of Edinburgh and built partnerships with major technology firms. Its collapse marks a significant setback for the LiFi sector, which had hoped to see broader commercial deployment of the technology in the coming years.
Why this matters if you're facing redundancy
If you are one of the 42 employees affected by pureLiFi's administration, it is worth understanding that redundancy in an insolvency situation works differently from a standard redundancy process. Your employer may not be able to pay statutory redundancy pay, notice pay, or holiday pay in full, but the government's Redundancy Payments Service can cover statutory entitlements up to legal caps, so it is worth making a claim through the Insolvency Service promptly.
It is also worth asking the administrators exactly what is happening to the business and whether a sale of any part of it is possible. If a buyer acquires the business as a going concern, your employment may transfer under TUPE regulations, which could protect your job or at least your terms and conditions. Not every administration ends in a full wind-down, so staying in contact with the administrators and any employee representatives during this period is important.
Because 20 or more roles are affected, your employer should be running a collective consultation lasting at least 30 days before any dismissal takes effect. These thresholds apply per establishment, so the exact position depends on how the cuts are spread across sites.
FairEnough is not a law firm and does not provide legal advice. Always seek independent legal advice before signing any documents. Information shown is for general guidance based on UK statutory entitlements.
