Unpaid - Am I redundant or is the company insolvent?

talkingduck

I haven't been paid in full for December 2013, January 2014 and do not expect to be paid for February 2014.


What are my rights? I have bills to pay and this is impacting my life.


How do I get 2.5 months pay?


I've contacted Citizens Advice and they suggested Small Claims or Employment Tribunal but if the owner doesn't have the money I might not get anything anyway, is that right?


I also found this https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you which would allow me to claim 8 weeks through the NI fund if the company is insolvent. Is the company insolvent? They have 10 employees that all need paying.


I am currently looking at new jobs and have just to agree a start date, if I start a new job do I loose the right to get the money?


Do I have to work my notice?


More background if it helps:



* This all started in November 2013, wages were late but they arrived.

* Only received 70% of Decembers pay
* January wages not paid
* 2 staff have already left
* February agree home working because I can't not pay for the petrol in my car
* Started looking for a new job and just need to agree a start date
* Do not expect the company to be able to pay wages for February
* A possible investor still has not invested, I can not see where the money is going to come from
* In need of money to get to my new job, higher transport costs and longer days


Thank you I really need help I have not slept well for weeks.

p00hsticks

I'm not an expert, but I'm afraid that I think that what the CAB is telling you is right. At the moment, to get the missing money you'd have to take them to the small claims court, and even if you win if there is no money there you'd not necessarily get anything back.

You are not redundant (because your employer has not told you that you are no longer required) and the comany is only officially classed as insolvent if and when it calls in the receivers.

Is it a limited company ?

I think the practical advice is to be looking for another job whilst continuing to press your bosses for the missing wages. You have my sympathy - it's not a situation I would wish on anyone.

Scorpio33

Hi,

The only thing I would note is that if they have not paid you, they are in breach of contract and therefore the contract of employment you have with them can be ripped up at any time ie: You can walk away without working your notice.

I suggest looking for any other job asap, even if the firm is not insolvent yet, if they are not paying wages there are close to it...

to add: You have worked the time that you are owed wages for, so will always be owed that money, even if you do walk away. So hope they will pay you or take them to a small claims court if you are still owed money.

Kernel_Sanders

You could report them to the unit that prosecutes companies for flouting minimum wage laws for a start.

Mersey_2

Those owed wages at the point of collapse will be secured creditors. However, pay in lieu of notice will be unsecured along with all other creditors.

I suspect the company is not yet insolvent. You can check online if it is a ltd company. If its a partnership eg a solicitors you can complain to the SRA, as severe financial mismanagement is a breach and the SRA can intervene in the firm. If you sue in the County Court or online, any Judgment obtained can also be reported to the SRA - or a similar regulatory body if eg medical/dental/accountancy and so on.

How long have you worked there and I take it you are a self employed consultant, rather than an employee? Have they been paying HMRC tax and NI Conts to the NI Conts Agency?