Wages not being paid.....

red_architect

Hi all

Just wondered if someone could give me some advice. I’ve been employed by an architects practice for over 25 years and currently the company is going through some difficulttimes (like everyone else) but cash flow is extremely tight and over the last 18 months salary payments have been getting later and later to the point where I haven’t been paid for over 6 weeks. “Contractually” I’m paid monthly but for the last year or so we’ve been paid on a fortnightly basis - so officially i have not received all of April's wages.

I’m just wondering how long should I wait before I bring action against the company. I have written a grievance letter for unlawful deduction of wages that is a fundamental breach of my contract and saying that I’m working under protest and by me working I do not accept the breach.

The company is in dire straits and regularly does not pay VAT or Nat Insurance or PAYE, has no liability insurance (all I realise is a legal requirement) so I don’t hold out much hope of it progressing too much further. The MD has suggested that if I want to find work elsewhere he would understand (I’m sure he would to get out paying 25 years’ worth of redundancy) and equally texted to say if I didn’t come in he would also understand. I have done neither.

The MD has suggested money will be coming in (generally we have been paid upfront for jobs currently in the office – never a good business model I know) and the cash flow forecast is quite grim – the MD, despite the bank and an insolvency practitioner recommending otherwise, does not want to liquidate the company as he personal guarantees that he would be unable to pay without loosing his home. As you will suspect the company has probably been trading while insolvent for a long time.

I am in a relatively fortunate to be able to wait (but I will need the money) a while but cannot wai tindefinitely, but how long do you think I should wait or do, given that I’m now owed over £5k wages? Should I take this to an employment tribunal or small claimscourt as I am still employed with the company? The MD is hardly around so its very difficult to talk.

I’ve got “plans” should the company go into liquidation but any thoughts or advice would be appreciated.

Sorry for the long post and hope you didn’t switch offbefore the end.

TrickyWicky

Text him back saying you'll understand if he wants to sell his house to pay you

Evilm

red_architect wrote: »

(I’m sure he would to get out paying 25 years’ worth of redundancy)

If they aren't solvent enough to pay it you may not get 25 years worth or redundancy. I'm sure the government scheme doesn't cover the full amount if the employer can't pay it.

Horseunderwater

This is a redundancy calculator - suugest you use it to calculate potential value.
http://www.thisismoney.co.uk/money/article-1656044/Redundancy-payout-calculator-How-I-I-lose-job.html

Then add that figure together with all your missed wages and register a Lien on his house to secure your rights as a creditor. That should be one way of getting your money. I would go see a solicitor who can give you some free advice that has experience of this sort of thing. You normally get 1/2 hour free with most of them. Why does the firm have these cash flow problems? Do they have a large debters portfolio where they have failed to collect monies owed to them? If so, then that should be made a priority. You cannot run a firm by getting cash up front to pay for stuff as yet not supplied or ordered without getting into big big trouble. And they have obviously gone well beyond that from sounds of it.

red_architect

Thanks for the advice. I'll try a friendly solicitor solicitor to see for further advice to see how best to escalate matters......