Company has no money for salaries

Jet

I work for a small company that today has no money for salaries which have to be paid today. This is due to the bank freezing the bank account because they have decided they want 20k of the overdraft back even though my boss has secured 2 properties against the current overdraft.

Assuming the bank won't listen to the bosses pleas, what happens if the boss asks us to "hang on" for our salaries? What if we dont' get the sales to pay the salaries (not likely for at least 3 weeks anyway).

Not a great situation to be in but with the current job market, not an easy one to escape from.

epsilondraconis

I would contact CAB, ACAS etc.

If you feel you need to continue working for the company, you could get a document drawn up where your boss personally secures the salaries. This obviously assumes he (personally) doesn't go bankrupt as opposed to the company going into adminstration.

Good luck - hope things work out okay.

Jet

Fortunately this month, we have been saved, but it's an ongoing worry.

glampam

This is happening to me too, for the last 5 months have only been receiving about 75% in dribs and drabs and thats after a pay cut and no paid overtime. Its a worry each month not knowing if I'm going to be paid. Thank goodness for this forum which has helped cut some of my bills down. Good luck

brightonman123

i would start looking for work elsewhere, and pronto- cant see the firm lasting much longer if they have to beg for ££, in order to pay the staff..

get the boss to check into invoice factoring, to improve cashflow (the bank may have subsidery that does this already) - get most of sales invoices paid up front, with remainder as /when customer pays.. service charges apply, but may prove the difference between survial and bustation.

Jet

brightonman123 wrote: »

i would start looking for work elsewhere, and pronto- cant see the firm lasting much longer if they have to beg for ££, in order to pay the staff..

get the boss to check into invoice factoring, to improve cashflow (the bank may have subsidery that does this already) - get most of sales invoices paid up front, with remainder as /when customer pays.. service charges apply, but may prove the difference between survial and bustation.

I do the accounts in the business and cashflow is only a problem due to lack of sales and boss bodging things and then profit being eaten up by having to make expensive repairs or give partial refunds. :rolleyes:

Basically there isn't enough profit there, sales are nearly always 100% cash up front, sometimes 50% so this isn't affecting cash flow.

brightonman123

right then, tell the boss to get better sales, or everyone leaves.. i am sure that will focus his mind.

joolsybools

Jet wrote: »

I do the accounts in the business and cashflow is only a problem due to lack of sales and boss bodging things and then profit being eaten up by having to make expensive repairs or give partial refunds. :rolleyes:

Basically there isn't enough profit there, sales are nearly always 100% cash up front, sometimes 50% so this isn't affecting cash flow.

This should be ringing major alarm bells! Get out before he bodges any more things up like your ability to bring home a salary.