Work and no pay for three months!

Attila

Hello - was wondering if anyone could give me some advice please!

I work for a small consultancy for about 2 years now. Since 8 months ago my employer has been struggling to pay salaries on time, however since Feb/March we've received no pay at all. In total I'm owed around £7k up to now.

The company has made some redundancies, but it does not look like that's helped. I have spoken to my employer and have said that I am happy to be made redundant or at least go part time, but he says he "really" needs me. Thing is I know the guys who have left (very experienced and more than me) are struggling like crazy to find jobs.

I have put up with 3 months no pay and been working overtime (unpaid overtime) to help get the business back up and running. However, today we've been told we would get payslips for Feb/March and April apparently to keep "in-line" with company policy!!! But still no pay!!

So effectively we're receiving a receipt of payment and no payment. I'm quite gob smacked as I have put good faith and hard work and no pay to help the business get back up and running, but this seems very illegal to me...

Can anyone help please? Where does the law stand on this situation?

Many thanks!

Annisele

The law says that your employer has to pay you your contracted wages (though that's civil contract law, not criminal). Unfortunately it looks as though he can't actually afford to do that.

In any event your employer has to pay you National Minimum Wage, but again if he hasn't actually got the money he can't do that.

Directgov publishes some advice on what to do if your employer is insolvent. It sounds as though your employer isn't actually insolvent yet - there's a link towards the end of that page with some information about what to do if the company is still trading but you're not getting paid.

I believe the process is: raise a grievance with your employer, then take the matter to an employment tribunal. However, for £7k it is probably worth getting paid-for advice - especially if the same issue affects all of your colleagues and you can share the costs of obtaining it.

I assume that you're already looking for a new job? It sounds as though your existing employer's problems are likely to be terminal, so you'll need a new job whatever happens with your pay claim.

Attila

Thank you very much for this advice. I had not come across this!

It sounds stupid, but I have not been looking for a job as I naively thought things can pick up. However there are around ten of us and the debt to be owed in terms of salaries is getting larger and larger. The team is not very close-knit so I don't think they would be involved in this. Very few of us actually talk about this issue at work.

I really don't know what to do about the payslip though - I guess paid-advice will tell me the answer but they are giving it to me tomorrow.

Cheers

Savvy_Sue

Write a letter immediately stating that although you have been given a payslip, no money has been received and you are taking further advice on your actions. Otherwise they MIGHT try to argue that you were paid: you have payslips!

ceridwen

Savvy_Sue wrote: »

Write a letter immediately stating that although you have been given a payslip, no money has been received and you are taking further advice on your actions. Otherwise they MIGHT try to argue that you were paid: you have payslips!

Good idea to write the letter - but actually you've also got your bank statements. Those bank statements will clearly show the money being paid in each month as normal (whether credited in or paid in by cheque) - APART FROM the last few months - and I presume that would be sufficient proof that you haven't received the money.

It does seem very odd to me to hand over the payslips without handing over the accompanying money...

I must say - I second the thought of looking for another job.

I am wondering what the position would be regarding income if you were to literally walk out of the job (after giving your employer a letter stating that he hadnt paid you since x date and that, if he didnt pay monies due to you by 2 weeks time then you regret that you have no alternative but to leave). I wonder whether a letter like this would cover you with the DWP that you havent resigned - you've been "forced out" - in order that you could get paid benefit right away? I know there is some legal provision for employees being able to declare themselves redundant after a certain number of weeks if the money isnt forthcoming - cant recall how many weeks it is (but think you've probably done that time by now).

You cant live on thin air - bills still have to be paid and food still has to be bought. Ithink you need to put STRONG pressure on your employer to pay up now or make you redundant (and either way - chase him for any money he still owes you).

I have the impression your employer is living in cloud cuckooland - hoping that "something will turn up" and meanwhile trying to keep his "labour supply" intact (ie you) by making false promises.

Zazen999

Attila wrote: »

It sounds stupid, but I have not been looking for a job as I naively thought things can pick up. However there are around ten of us and the debt to be owed in terms of salaries is getting larger and larger. The team is not very close-knit so I don't think they would be involved in this. Very few of us actually talk about this issue at work.

Yes, it is stupid. Get looking.

And now is the time for the ten of you to get closer and sit down with your employer and have an adult conversation about the state of the business. How on earth can you not talk about this issue at work!

Attila

Thanks to all who have replied! Some strong words, but I guess I needed this as in perspective it is a ridiculous situation to be in.

I will write a letter and email stating that I do not want to receive payslips until I receive payment.

One thing I have learnt is that no matter how faithful or go-out-of-your way you are to your boss, it never pays back. The guys in the team have all (we) worked crazy hours in the hope things would change.

Thanks again for all your help I needed some strong words

Will post what happens...

heretolearn_2

A friend of mine works for a company going through a rough patch and not able to pay full salaries, but they are keeping the staff informed and doing their best to pay something on a fair basis (everyone gets a share of what is in the salary pot). Because they are being honest about it everyone is willing to carry on, although obviously not exactly happy, and they believe things will improve. My friend is owed just under £1000. The company is still issuing normal payslips as that is what the people have earned, just not been paid, but receiving a payslip isn't proof of payment anyway. A lot of us get a payslip a day or two before the money. The firm she works for is keeping a log for everyone of exactly what is paid each time, and how much that takes off the arrears.

3 months with no money and no information is a really bad sign. Start looking for a new job.