Immediate Redundancy?

Skintski

Hi All

My boyfriend has been made redundant with immediate effect this morning. They were paid last week for December and so have been told there is no notice period and so no more funds coming their way.

The company will be going into CVA in about 3 weeks time and at that point they can approach the government for statutory pay.

Is all that normal please? I thought they would have to provide some kind of notice period for their staff since they are not going out of business immediately. They are one company under an umbrella (all the bills etc get paid by the parent company) which will continue to trade.

Any advice gratefully received.
Thank you

SarEl

I am afraid that CVA's aren't really my area of law, but what I do know about them suggests that yes, the employer can do exactly this. Notice, unpaid wages, holiday and redundancy pay are picked up by the government whilst the company writes off most of its debts and carries on trading, without even having to tell their customers that they are in financial trouble. So everyone wins - oh no, sorry, hang on - nobody wins except the people who own the company. Like usual.

Your boyfriend needs to sign on as soon as possible - the government scheme will deduct money from what is due to him for JSA whether he claims / gets it or not.

Skintski

A further question if you don't mind. The employees have been told they can tell immediate family but do not want this being common knowledge just yet. They are the kind of people who would sue you if they can but would they have a leg to stand on here?

My personal thoughts on it are that we owe them nothing whatsoever since they clearly have not done their employees any favours.

I should point out that I ask this not because we are looking to spite the company but because there are very few companies that do what they do and so he needs to start approaching others for jobs.

getmore4less

It will be obvious when they all go to a recruitment agents and start asking around if there is any jobs.

They can't stop you looking for work.

if they are making enough redundnat there is a requirement to report it to the goverment

Skintski

getmore4less wrote: »

It will be obvious when they all go to a recruitment agents and start asking around if there is any jobs.

They can't stop you looking for work.

if they are making enough redundnat there is a requirement to report it to the goverment

The entire team have been made redundant, managers the lot.

SarEl

Skintski wrote: »

A further question if you don't mind. The employees have been told they can tell immediate family but do not want this being common knowledge just yet. They are the kind of people who would sue you if they can but would they have a leg to stand on here?

My personal thoughts on it are that we owe them nothing whatsoever since they clearly have not done their employees any favours.

I should point out that I ask this not because we are looking to spite the company but because there are very few companies that do what they do and so he needs to start approaching others for jobs.

What they want and what they get are two different things. You cannot be sued for telling the truth. And they cannot afford the legal deposits and fees to sue since they are in a CVA! Say what you want (provided it's true). He deosn't work for them any more and he is perfectly entitled to tell prospective employers why not.