Please help. I'm in real trouble

nbtafelberg

Dear All,

I have worked very hard for a company for 4 years, about 2 years ago we had a 10% wage cut.

Monday morning, myself and the other employees of the company arrived at work.

Everything had gone. The boss was standing there and gave us a letter and told us he had set up a new company and transferred all the assets and as of today we had been made redundant. He told us the original company is going into liquidation.

He then took me to his lovely new offices and offered me some work, via email he offered me work for cash doing the same thing I would have done in my job.

I am really blessed because I've got a new job, but that starts next week and I'll have a week and a halfs money to live on in March. I had no warning.

We've been told we will get statutory redundancy but that could take four to six weeks.

I spoke to a no win no fee solicitor and they said, although he was guilty of all kinds of misdemeanours, they would not handle it because he claimed insolvency.

Just to rub salt into the wounds. if you phone the old companies phone numbers, they will answer it with the old companies name, they also sent our p45's in envelopes franked with the old company and they are using the companies old timesheet system (which I can still get into and have screen dumps of).

So he has started a nice new company and myself and some others are left out in the cold, with no money, nothing.

I feel cheated, powerless and sick in my stomach, I am a programmer and I could, in about 5 minutes take down his customers systems but I really don't want to because it makes me as bad as him, it's not their fault after all.

anyway I just hope someone out there has some advice.

Valli

For a start if you DID take systems down you would be in real trouble - I suggest you delete threats to your former employer. I will edit this later.

Secondly if it were me I would accept his offer of a job (for now) but look for something else.

You'll just have to tighten your belt for a few weeks.

What exactly are you looking for? What you can do to him?

As to the legality of what he's done you'll have to wait until someone with more knowledge pops along. Personally I wouldn't want to work for someone who suddenly closes one company then starts another.

For once I won't even suggest you go to your union - because I bet you aren't in one - or you would have probably had wind of this. Nevertheless I suggest you join a union sharpish if you're going to work for such a shyster.

meg72

So so sorry to read of your trouble,what a horrible man he must be, so callous and selfish. Personally I would not like to work for him ever again, but dont burn your bridges, he is offering a job.although his offering cash is a bit disturbing.

He obviously needs you could you not explain that you cannot afford to be without money and
see if he will offer cash in advance of your redundancy payment.

I feel there must be something that could be done legal wise but would not know where to start,CAB perhaps? A Union?

Anyway wish you all the luck in the world. Horrible experience for anyone.

nbtafelberg

I would never take the systems down at all.

...and I have already found another job with someone else, I would never ever work for him again and I have told him so.

It's just the injustice of it that he's allowed to just take all the stuff from the first company, transfer it to another, carry on trading, and not even fulfil his legal duty to his staff with their redundancies.

Paul.

Valli

Well it doesn't sound right at all - but it's totally out of my area. Whether he's broken the law I dont know but it appears likely. As to who will prosecute - again I'm stumped.

But I'm pleased you're out of it.

toddle2u

When the previous company goes into formal Liquidation either the IP appointed or the OR will look at the transfer of assets and see if they have been transferred at under value. If they have he will be forced to either pay for them or give them back. You will only be able to claim you statutory redundancy once the company has formally entered into an insolvency process (i.e liquidation) and only once the creditors meeting has been held will you be able to submit your claim for statutory redundancy to the RPO through the IP or OR. They have to give at least 7 days notice for the creditors meeting to be held but this is normally 14 -28 days and you would receive payment in 6 - 8 weeks after this from the RPO. So in reality you could be looking at 10 weeks to receive you statutory redundancy pay. Unfortunately what he has done is perfectly legal and as long as he has paid for the assets there is not a lot you can do.

nbtafelberg

toddle2u wrote: »

When the previous company goes into formal Liquidation either the IP appointed or the OR will look at the transfer of assets and see if they have been transferred at under value. If they have he will be forced to either pay for them or give them back. You will only be able to claim you statutory redundancy once the company has formally entered into an insolvency process (i.e liquidation) and only once the creditors meeting has been held will you be able to submit your claim for statutory redundancy to the RPO through the IP or OR. They have to give at least 7 days notice for the creditors meeting to be held but this is normally 14 -28 days and you would receive payment in 6 - 8 weeks after this from the RPO. So in reality you could be looking at 10 weeks to receive you statutory redundancy pay. Unfortunately what he has done is perfectly legal and as long as he has paid for the assets there is not a lot you can do.

Thank you so much for your reply, at least that makes it clear, in terms of the new company, and since the insolvency practitioner is a friend of his I'm sure the books will be fiddled in the appropriate fashion.

At least I have a new job (with another company), I just feel sorry for the others who are just left without anything.

Valli

nbtafelberg wrote: »

Thank you so much for your reply, at least that makes it clear, in terms of the new company, and since the insolvency practitioner is a friend of his I'm sure the books will be presented in the appropriate fashion.

corrected for you;)

Karma OP - he'll get his...

WhiteHorse

This is a classic company fraud.

If you really want to get back at him, report him to HMRC and dispute the dissolution of the old company at Companies House. If you know who his other creditors are, you could advise them too.

redmalc

The issues that need addressing,did any of the staff get transferred to the new company ?also the creditors need to contact the IP and request an independent valuation of the companies tangible assets,given the company has adopted the old companies telephone number and i would expect the domain names, web sites, customer lists and work in progress then a substantle payment should be made for goodwill.
If the new company has a similar name the new co will be in trouble,section 216 insolvency act,if HMRC are a creditor they need advising because they have the power to get things done with the IP