Victim of Liquidation

HarrisBikeNut

My daughter has recently lost her job in Child Care after the Nursery owner put the business into Liquidation. A firm is now handling the matter but my daughter has been informed by the owner that she will not be paid for the previous months work she has completed. My questions are -
Is this legal?
What rights etc does my daughter have?
Should she take any action herself ( is it advisable?) to recover the outstanding wages?

I have advised her to seek advice from her local CAB office.

Can anyone offer advice please?

Regards
Bob

whitewing

Call ACAS. Contact details

Monday - Friday 08:00 - 18:00 - 08457 47 47 47

dmg24

She should have received some information from the liquidator. This will detail her rights as a creditor. If she has not received this yet (give them a week or so to send it out), if she gives them a call they will explain where she stands and when/ if she is likely to receive anything.

LittleVoice

She should ensure that the liquidator knows of her existence and claim on the assets. The owner should have provided details but you cannot rely on that.

epsilondraconis

When the company I worked for went into liquidation, it took over 4 years for me to finally receive the money I was owed. We were only a small outfit - 15 people. When the company went into liquidation, there was some cash available to pay some of the salaries for the previous month; hopefully the liquidators of the nursery will be able to access some cash to pay the salaries in the short term.

How long has she been with the nursery? It's just that she could be entitled to statutary redundancy pay from the government. Either the job centre or CAB should help with this. Also ensure she contacts the liquidator to find out when she will receive her pack (although as dmg24 has already stated, you may want to give them a few days to get it out to you).

Is it an independent nursery or part of a larger chain?

I hope it all works out for her.

pinkshoes

One of my colleagues used to work for a company that went into liquidation. He had to write to the creditors staking his claim for 2 months work that the company owed him pay for.

Unfortunately, after all debts were paid, there was very little money left over to pay the unpaid wages, so they got about 1% of their salary, or something ridiculous. Nothing else they could do, as there was no more money to be had.