Employer has not paid me on time - using CVA

tinoest

Hi All,

Not sure if this is the right section or not, but I think its the best place to ask :rotfl:

My Employer has not paid me for June's pay, it was due on the last of the month, this is due to the company being basically bankrupt with no money in the bank, they are currently trying to finalise some investment this weekend, however if it fails then I don't think they will get any money in to pay me or other members of staff.

Where do I stand on getting what is owed to me? Obviously if they can't pay staff then the company will cease trading, atm most are working on the promise that they will get paid this week.

I assume that I would have to fight with the companies that are owed money to recoup what is owed to myself? Or can the company just not pay me and I will never see what I have rightfully earned.

I'm going to contact the CAB on Monday, however would like your thoughts first.

Thanks for reading this and for any advise given its greatly appreciated.

SarEl

tinoest wrote: »

Hi All,

Not sure if this is the right section or not, but I think its the best place to ask :rotfl:

My Employer has not paid me for June's pay, it was due on the last of the month, this is due to the company being basically bankrupt with no money in the bank, they are currently trying to finalise some investment this weekend, however if it fails then I don't think they will get any money in to pay me or other members of staff.

Where do I stand on getting what is owed to me? Obviously if they can't pay staff then the company will cease trading, atm most are working on the promise that they will get paid this week.

I assume that I would have to fight with the companies that are owed money to recoup what is owed to myself? Or can the company just not pay me and I will never see what I have rightfully earned.

I'm going to contact the CAB on Monday, however would like your thoughts first.

Thanks for reading this and for any advise given its greatly appreciated.

There is a government scheme which can step in to pay - but it is capped at a weekly maximum.

Try http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10026695

tinoest

SarEl wrote: »

There is a government scheme which can step in to pay - but it is capped at a weekly maximum.

Thanks for the link, I gather from that I can claim up to £380 a week, which as I'm on under that a Week means I should be able to claim what I'm entitled to with no loss of earnings (per say) is that correct?

I can't read anything on there about a limit to how long I have to wait before I can use this approach, as obviously the company is still trading, although only just.

SarEl

tinoest wrote: »

Thanks for the link, I gather from that I can claim up to £380 a week, which as I'm on under that a Week means I should be able to claim what I'm entitled to with no loss of earnings (per say) is that correct?

I can't read anything on there about a limit to how long I have to wait before I can use this approach, as obviously the company is still trading, although only just.

Sorry but that's a "piece of string" question. If they are still trading then you can't qualify for the scheme. If your company cannot pay you then in liquidation you are a preferential claimant - employees costs are amongst the first to get paid. But it sounds like you aren't even there yet! If you then cannot be paid the scheme kicks in (assuming the government haven't cut it by then). But as long as the company is still trading you have to claim against them, and then against the company in liquidation. I am afraid it isn't a fast procedure.

tinoest

Thanks again, I'm just preparing for the worst. An working out what procedures I should take and when.

For now it seems best for me to look for a new job and to hope that this investor comes through this weekend.

I guess I should clarify at what stage can I stop working for the company without me being in breach of contract, as currently seeming they have not paid me on time, I assume they are.

tinoest

Hi,

Sorry to bother you all again, would just like some more advice.

The company has started to take out a CVA, Company Voluntary Arrangement. However there is still no guarantee, on if or when I will be paid.

I understand that I can't use the National Fund now as the company has not gone into liquidation? Is this the case?

If so is an employment tribunal the only option available to myself?

I'll be speaking to the local CAB shortly, but would appreciate opinions from others on here.

Thanks for any replies