Hi,
I was wondering if anyone could help or advise me. I was made redundant from a company just over a week ago. I have now been told the company has gone into liquidation and the pay they owe me and the redundancy entitlement i should have been getting in december will not be paid to us.
Although i have found a new job i will only get a weeks pay in december due to the cut off dates etc and was really relying on that money to see me over the xmas period. CAN THE COMPANY DO THIS??? I will not be getting my p45 either which means my new job income will be taxed to the hilt!
I am a single parent and i will not have enough money to pay my bills. Does anyone know of anything i can do or someone that will be able to help?? Because im working, i know social won't be able to help so does anyone have any helpful suggestions please :|

The reason why a compnay goes in to liquidation is typically because they haven't enough money to carry on trading.

If a company hasn't got enough money to meet it's bills, it's illegal for the Directors to carry on running the business.

Take a look at http://www.companyregistrations.co.uk/liquidation-and-insolvency.asp - this explains about company liquidation. You MAY eventually get something but you probably won't. :(

As for your new employer - some companies MAY offer you an advance against salary - have a word with your personnel people, but they don't have to do anything - your employer's liquidation and the efects on you is nothing to do with them.

I think the answer is yes, you new company can do this as your previous redundancy is nothing to do with them. However, they MAY be willing to help - I guess there's no harm in trying.

Good Luck.

Hiya
Unforunately there is very little you can do. You should be able to get information on who the liquidator is to make sure you are registered as a creditor (although they should have this). You can get a statement of affairs from the liquidator which will show how much they owe to other people and the realisable debtor value (ie how much cash they have or will be able to get). The liquidators should hold a creditors meeting. You may, at best, get a proportion of what you are owed. If you want further specific advice let me know - Ive just gone through this with a company that went bust on me so im quite familiar with it!

By law dont they have to pay you for what you have worked tho???
It isn't my fault the companys gone bust!

by law they have to pay you for hours worked but if they have gone into liquidation more than lilkely they have no money to pay you with. even if they have moneyto pay you it may be many months before you recieve any and then it may only be a % ot the total owed

By law dont they have to pay you for what you have worked tho???
It isn't my fault the companys gone bust!

But they have no money.

You are a creditor to the company - i.e. they owe you oney - but there will definitely be people higher up the pecking order than you, I'm afraid.

This may sound harsh but that's the way it it.

But they have no money.

well neither have i now!

I'm sure that it will be no comfort to you rach, but this will apply to everyone who worked at the company- they're not singling you out in some way.

I'm sure there was never any intention to leave you in the lurch- these things tend to happen very quickly when one of the directors goes to see the bank to renegotiate credit facilities and the bank simply say 'enough is enough'.

I know of one company where the only person who knew about the true state of affairs had to tell everyone (including other directors) that the company was closing with immediate effect- everyone just picked up what they could carry of their belongings and the doors were locked behind them.

It was a sad state of affairs, but it doesn't help the business if people know that your company is struggling (they avoid doing business with you) so people just keep going with it all a secret until someone pulls the plug.

I think thats true Medusa, things can happen quickly. However, in many cases companies are guilty of illegally trading insolvently. Just as individuals overstretch themselves financially so do companies.

I hope this couple of pieces of information helps.

There are special provisions to protect workers in this situation.


Q. How can I get a redundancy payment if my employer has gone bust?

A. If you have been made redundant because your employer has gone 'bust' or into liquidation your redundancy pay is protected and will be paid by the Department of Employment - Section 166 ERA 1966. The protected redundancy pay is only up to the weekly limit announced each April.


Q. My employer has gone 'bust': how can I claim my pay owed to me?

A. Where an employer becomes insolvent owing debts to employees there is a special scheme to compensate these workers. This is known as the 'Insolvency Provisions' of the Employment Rights Act 1996. Under Section 184 of the Act the Department of Employment Redundancy Payments Section will pay to such workers the following debts:

Any arrears of pay up to eight weeks.
Any statutory notice pay.
Up to six weeks' holiday pay.
Any basic award of compensation for unfair dismissal from an employment tribunal.
Reimbursement of fee or premium paid by an apprentice or articled clerk.
Repayment of contributions to occupational pension scheme collected from employee's pay but not paid into pension scheme by employer - Section 124 Pension Schemes Act 1993.
Redundancy payments - Section 166 ERA 1996.

Contact must be made with the local Department of Employment Redundancy Payments Section for the appropriate forms. If a claim is refused by the Department of Employment, an appeal may be presented to an employment tribunal, normally within three months of the refusal.


www.c-todd.com

cheers i found out from the cab, and they said pretty much the same thing. i will be able to claim all the money back but from the insurance fund and it will take time x
Thanx everyone for your help and advice

You should get your money and hopefully that part at least will be a happy ending.

www.c-todd.com