Employer ending employment due to supposed "lack of income"

Chutzpah

Earlier this year my employer sold his business and asked me to join him on his latest venture. I was happy to oblige.

Now he's decided that we're not making enough money, so whilst the business is growing he's got a part-time job, and has asked me to get one as well.

That isn't such a big deal, and I'm looking.

However, today he's basically said that if I don't find something within a few months "he can't afford to pay me any more".

I've got to admit, I'm a bit !!!!ed off by this. I know exactly what is coming into the business and what is going out, and despite us not making a huge amount the business has enough money to pay my wages several times over.

He's also cited the lack of work at the moment and how he doesn't want me just sat around doing nothing if he's working another job part-time.... correct me if I'm wrong, but I'm just an employee doing the tasks my employer sets. If I haven't got enough to do how's that my problem?

What are my rights if he was suddenly to stop paying me citing "not making enough money?" when in fact the business could afford my wages?

Actually, as I've typed it I've pretty much realised and answered my own question that it would only be breach of contract if I wasn't given my contractual notice, but not sure if anyone else has ever experienced this. It's just frustrating that my livelihood is being threatened purely because he doesn't think he's making enough.

With a family to support and outgoings to pay, as I'm sure you can imagine it's praying on my mind a little.

DancerSupreme

I imagine this would be classed as redundancy however he would then not be able to replace you for at least 2 years after otherwise you will have a case for the employment tribunial.

I would speak to an employment lawyer, maybe have a scout about the CIPD website and consider speaking to CAB. If I were you I would have the facts earlier rather than later.

SomeBozo

If you have been there less than a year, he can sack you for any reason (as long as its not discrimination based on age, sex gender etc).

Bozo

Chutzpah

But, SomeBozo, if he has to give me a certain amount of notice within my contract he can't just turn around on a certain date and say "I can't pay you any more" whilst the business trades as a going concern, can he?

SomeBozo

If you have a written signed contract that states a paid notice period, then no he can't. However if the business is a ltd company and goes under, you won't get anything.

You state you know the incomings and outgoings, are you sure? Is there any debt that does not go on the in-comings and out-goings sheet, but on the accounts, you don't know about.

I always remember my finance people in an old company seeing the income, yet not knowing about secured debts etc.

You need a frank and open discussion with your boss.

Bozo

bap98189

Chutzpah wrote: »

But, SomeBozo, if he has to give me a certain amount of notice within my contract he can't just turn around on a certain date and say "I can't pay you any more" whilst the business trades as a going concern, can he?

Yes, pretty much. If you have worked there for less than 1 year then you can be dismissed for any reason so long as the reason for the dismissal is not deemed "unfair" or discriminatory. The employer only has to give you 1 weeks notice.

getmore4less

gembaxter wrote: »

I imagine this would be classed as redundancy however he would then not be able to replace you for at least 2 years after otherwise you will have a case for the employment tribunial.

I would speak to an employment lawyer, maybe have a scout about the CIPD website and consider speaking to CAB. If I were you I would have the facts earlier rather than later.

Please provide the evidence for this.

To date no one has found anything that prohibits an employer re employing almost imediately after redundancies.

Emmzi

gembaxter wrote: »

I imagine this would be classed as redundancy however he would then not be able to replace you for at least 2 years after otherwise you will have a case for the employment tribunial.

I work in HR and this is not true.

He can lay you off on whatever terms it says for notice in your contract.

He can employ you or whoever he likes when business picks up.

LittleVoice

gembaxter wrote: »

I imagine this would be classed as redundancy however he would then not be able to replace you for at least 2 years after otherwise you will have a case for the employment tribunial.

I would speak to an employment lawyer, maybe have a scout about the CIPD website and consider speaking to CAB. If I were you I would have the facts earlier rather than later.

As getmore4less and emmzi suggest, there is no way this is true - and to be honest no one else has even dared to suggest as long as 2 years as being this mythical period.

I'm surprised someone referring to the CIPD would have trotted out some a false statement.

DancerSupreme

LittleVoice wrote: »

As getmore4less and emmzi suggest, there is no way this is true - and to be honest no one else has even dared to suggest as long as 2 years as being this mythical period.

I'm surprised someone referring to the CIPD would have trotted out some a false statement.

I am going on what we were advised by our company employment lawyer when we recently made redundancies. We were not allowed to rehire for a particular position for 2 years following the redundancy.

If we repackaged the job then yes we can get around it.

I too work in HR and don't wholey appreciate being slated so viciously - manners do not cost a thing and a simple "are you sure that is correct" is suitable.

Must say this forum is certainly not what I thought it was!!

LittleVoice

gembaxter wrote: »

I am going on what we were advised by our company employment lawyer when we recently made redundancies. We were not allowed to rehire for a particular position for 2 years following the redundancy.

If we repackaged the job then yes we can get around it.

Then please do ask this person what specific law is being referred to here. Was there something really very special about the particular position?

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And sorry if you felt personally "slated".