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Should I continue working?
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besha
Posts: 19 Forumite
Hi everyone, I'm posting the following information on behalf of my mother who is being made redundant. Apologies if this is a common question or a stupid one as we're both a bit clueless when it comes to this kind of thing.
The following is what she's sent to me:
My company told me mid december that they were going into voluntary liquidation. A court date has yet to be set for this. I was told I would not get paid for december as there was no money to pay me.
A payslip has been produced for december as if I were receiving my usual pay along with my P45. The letter received from the liquidator says the company will cease trading on the 31.12.12. I'm continuing to help with accounts work and the company are trying to sell assets to repay the bank loan. According to www.gov.co.uk once the court declare the company insolvent I can claim redundancy monies due and up to 8 weeks unpaid work plus holiday pay still due.
However if I have been given my P45 how can I prove my continued work and will I be able to claim for it or would I be best just to walk away and leave the company to it?
Thanks very much in advance for any advice.
The following is what she's sent to me:
My company told me mid december that they were going into voluntary liquidation. A court date has yet to be set for this. I was told I would not get paid for december as there was no money to pay me.
A payslip has been produced for december as if I were receiving my usual pay along with my P45. The letter received from the liquidator says the company will cease trading on the 31.12.12. I'm continuing to help with accounts work and the company are trying to sell assets to repay the bank loan. According to www.gov.co.uk once the court declare the company insolvent I can claim redundancy monies due and up to 8 weeks unpaid work plus holiday pay still due.
However if I have been given my P45 how can I prove my continued work and will I be able to claim for it or would I be best just to walk away and leave the company to it?
Thanks very much in advance for any advice.
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Comments
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Not sure why the question is being asked given that it's the 11th January. Presumably the company ceased trading on the 31st December and the mother is now redundant. Or is it a question about what she should do after the 31st December?0
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Who is she working for?
Ask them when/how they will be paying.
What date is on the p45?
She should have negotiated pay from that date.0 -
Thanks very much for the replies folks and apologies for the lack of information earlier . As I say we're not that clued up in this area so I appreciate your patience. It also appears that a lot of information is being withheld from her as well.
My initial post may have been misleading so apologies. The company hired an accountancy firm to assess their finances and she was given a letter from them (dated 17th December), the relevant sections reading:
'We were recently asked to undertake a review of the financial position of the above company and to give an opinion on the future strategic plans. After our review and discussions with the directors our advice was that the company does not have a viable future given the current economic climate and therefore it would be prudent for the company to cease trading with effect from the end of December 2012. As you are aware the directors have taken our advice and you have been informed of the position.
Within the next few weeks it is intended that the company will enter into a formal insolvency arrangement which will mean that any sum due to you in respect of unpaid salary and/or redundancy will be met by the government. You will be unable to make a claim until the company has entered into the insolvency agreement which has to be ratified by the court. It is intended that documentation will be submitted to the court in early 2013. The hearing may be several weeks into 2013 but we will keep you informed.'
The company are still trading (presumable pending the court agreement over the insolvency arrangements) and currently owe a VAT payment and December wages to the staff that they can't afford at the moment. As I understand she is able to claim this money back from the government as per the information here: https://www.gov.uk/your-rights-if-your-employer-is-insolvent/overview.
The confusion lies in the fact that the company have not yet issued her p45 (it'll be received the beginning of next week apparently, but dated the 31st December).
She has continued to work there post December 31st as she was informed by the employer that she would be able to claim money for any work done EVEN after the date her p45 was issued. Having found this information out I suspect they have misinformed her and this is not the case?0
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