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Employer not paying salary

Long time MSE user using other account.

Wondering whether anyone can help.

My son has worked for his employers (a small family firm) for approximately six years.

However these past few months there have been severe arguments and disagreements within the family, which will probably cause the firm to eventually close.

My son is caught in the middle and for the past six months or so his monthly salary has been paid late. He still hasn't been paid for July, and we are now 2 weeks into August!

I believe the company have considerable debts and my son has been half promised part of his salary.

The problem which my son finds himself in is that no money is being paid by his employer and he won't make him redundant, in order that my son can sign on with the Job Centre, and at lease receive Jobseekers allowance. He is of course, doing all he can to find other jobs.

My son calls into his place of work several times a week but keeps being fobbed off with different excuses, and he is gradually losing all patience.

Following advice from ACAS, two weeks ago he gave his employer a letter of grievance, allowing two weeks to resolve the issue. When this period of time expires, I believe he can take his employer to tribunal, although I don't know what good this will achieve.

Basically, my son who lives with us is living off his savings, along with a little help from us.

We have checked out Direct Gov info, but not sure where he goes from here.

Sorry for long post, but can anyone please offer any advice?

Much appreciated.

Comments

  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If the employer is short on money then theres going to be naff all to pay wages, are the other staff affected also.
  • There is one other bloke in the same position.
  • Any advice to offer?

    Son's employer still not paid July salary, no work for son to do.

    Surely his employer should makehim redundant?

    Are there any legal channels he can take to try and resolve the issue?

    Thanks for any advice.
  • Mersey_2
    Mersey_2 Posts: 1,679 Forumite
    He could resign and then claim constructive dismissal, in order to claim JSA; but, I'd be inclined to get a Solicitor to write a letter, demanding payment and/or redundancy - or at least confirmation that the firm is liquidating or continuing to trade.
    Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.
  • MissSarah1972
    MissSarah1972 Posts: 1,648 Forumite
    No work? Does he have a contract stating contracted hours?
  • Thanks very much for your replies.

    If my son was to resign and claim constructive dismissal, would that not then stop any claims he has to redundancy payment?

    The firm has considerable debts, yet son being told by one family member that he hopes to continue trading. From what my son has heard, this is virtually impossible. He just keeps being fobbed off.

    He doesn't have a contract.

    Thanks for any further suggestions.
  • marybelle01
    marybelle01 Posts: 2,101 Forumite
    edited 23 August 2024 at 11:04AM
    Thanks very much for your replies.

    If my son was to resign and claim constructive dismissal, would that not then stop any claims he has to redundancy payment?

    Yes it would and you don't need a lawyer to charge you to write letters to the employer. It's easy to do it yourself. Difficult though this is he would be better off hanging on until the two weeks is up and if he hasn't got his money, making a tribunal claim for the unpaid wages. I would personally suggest that he simply tells the employer now that he is still awaiting the money, and whilst he appreciates that the employer is having a difficult time, he is having an even more difficult on because he cannot live on thin air, and they are leaving him no alternative but to go to a tribunal for his unpaid wages. He doesn't want to have to resort to this, he's sure they don't want him to, but he's a working man and his wages are what he lives on. So pay up or else he has no other choice.

    It's a bit of Hobson's choice and not really fair on him I know, but if he resigns then he has lost the small amount of redundancy he may be able to get (through the govrenment scheme if nothing else), and from the sounds of it there won't be an employer to take to tribunal sometime soon if he did claim constructive dismissal.
  • Thanks very much marybelle01 for your detailed and very helpful reply.

    My son has fully sympathised with his employer's predicament numerous times, but stressed that he needs his wages to live on.

    But the employer just emphasises his own problems and my son is left with false promises.

    He is going in to his workplace again this morning, and I will advise him to threaten his employer with a tribunal to claim his unpaid wages. It's difficult though as he could possibly receive up to £5K in redundancy (less if claimed through the government scheme), which would be lost to him

    He just wants to move on but his employer is making it very difficult.

    He is keeping a notebook stating everything that happens.

    Really appreciate your help.
  • marybelle01
    marybelle01 Posts: 2,101 Forumite
    edited 23 August 2024 at 11:04AM
    Thanks very much marybelle01 for your detailed and very helpful reply.

    My son has fully sympathised with his employer's predicament numerous times, but stressed that he needs his wages to live on.

    But the employer just emphasises his own problems and my son is left with false promises.

    He is going in to his workplace again this morning, and I will advise him to threaten his employer with a tribunal to claim his unpaid wages. It's difficult though as he could possibly receive up to £5K in redundancy (less if claimed through the government scheme), which would be lost to him

    He just wants to move on but his employer is making it very difficult.

    He is keeping a notebook stating everything that happens.

    Really appreciate your help.

    I fully understand how difficult this is for him, and I wasn't suggesting the "diplomatic route" because I think the employer deserves it. It is just that the employer has more than his wages - he also has his reference! So whilst that shouldn't stop your son from getting what is his due, he also has to be mindful of the fact that if he can maintain as good as possible relationships then it's in his own interests to do so. Having his pay missing is bad enough, risking his redundancy notice is worse - possibly having to explain why he has no reference for a six year period of employment is even worse! And no matter what he might explain, some people won't beleive him.
  • Thanks again, very much appreciated.

    I totally agree with what you're saying.

    My son has an exemplory record and has worked for this small family company for almost 20 years, having left for a short time approximately 6 or 7 years ago, then returning when asked.

    He has only ever in that time been off sick for approximately one week, and is always punctual arriving at work.

    He gets on well with all family members and can see all sides of the argument. He has been promised an excellent reference from other family members, and I think they would stand by this.

    However, I agree that it's best not to 'rock the boat' if possible.
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