Unpaid salaries if I resign

Elka2013

Hi

New to forums so bear with me. The company I am with at the moment has not paid me 3 months salary and also owe more £1500 in unpaid expense claims. My personal financial situation is becoming untenable and I just want out.

If I hand in my notice (6 months), can I legally insist on all monies owed to me to be paid by the time the notice period ends?

There are others in the company who are in a similar position to me.

Thanks all.

lincroft1710

Why aren't salaries being paid?

Is the company boss deliberately withholding pay, or has the company serious cashflow problems and likely to go bankrupt very soon?

Elka2013

The latter - serious cashflow problems. If projects we are bidding for come in then our cashflow will be better but still...

If this carries on I don't see us trading come Christmas.

lincroft1710

If your employer is a limited company and there is no money, there is no point on insisting on anything, they can't pay what they haven't got.

Why haven't the unpaid employees got together and asked the employer when can they expect to be paid?

At worst if it's a limited company and it goes under, you (and any other employees owed money) become a creditor and will probably only receive a fraction of what you are owed.

claret_mike

If the company goes into liquidation then all staff will be able to claim from the government if the company cannot pay the o/s salaries.

If you quit, you may not be entitled to it but could put in a claim but you will then just become a creditor and get pennies in the pound if that.

The best bet would be to have a meeting with the bosses with your colleagues and see how you can work this out. I would not be funding any more expenses myself if I was you.

As a side note, if the company is trading and is not able to pay it's debts, then its insolvent and the directors can face consequences if they continue to trade accepting credit or increasing their liabilities knowing that they cannot pay them.

That elusive contract, how realistic is it that they will get it? I would probably speak to someone like ACAS if I was you.

HappyMJ

Personally I'd just refuse to do any more work until you are paid your outstanding salary and expense claims. They are in breach of the T's and C's of your employment contract by not paying you so having to give 6 months notice doesn't really matter any more.

Although the government scheme will pay you your outstanding salaries that does not include your outstanding expense claims.

lincroft1710

claret_mike wrote: »

If the company goes into liquidation then all staff will be able to claim from the government if the company cannot pay the o/s salaries.

But isn't this limited? I read somewhere there was a max of £450 pw and only 8 weeks wages/salary could be claimed from the NI fund?