We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Is is legal to take property in lieu of wages?
Options
mall83
Posts: 21 Forumite
Hoping someone could offer some advice...
The company I work for is going into administration next week and we have not been paid for our last months salary. Our employer has washed his hands of the situation and is unprepared to offer us any advice.
We are wondering if it would be legal to take the equipment we use at work (i.e apple mac computers) in lieu of payment? We've been told that we should and that 'possession is 9/10s of the law' but we've also been told that the administrator will want to sell them and could sue us if we remove them from site.
What should we do in this situation. Thanks!
The company I work for is going into administration next week and we have not been paid for our last months salary. Our employer has washed his hands of the situation and is unprepared to offer us any advice.
We are wondering if it would be legal to take the equipment we use at work (i.e apple mac computers) in lieu of payment? We've been told that we should and that 'possession is 9/10s of the law' but we've also been told that the administrator will want to sell them and could sue us if we remove them from site.
What should we do in this situation. Thanks!
0
Comments
-
Hoping someone could offer some advice...
The company I work for is going into administration next week and we have not been paid for our last months salary. Our employer has washed his hands of the situation and is unprepared to offer us any advice.
We are wondering if it would be legal to take the equipment we use at work (i.e apple mac computers) in lieu of payment? We've been told that we should and that 'possession is 9/10s of the law' but we've also been told that the administrator will want to sell them and could sue us if we remove them from site.
What should we do in this situation. Thanks!
No it isn't legal. It is called theft.0 -
If the director (and so the company) gives you the computers you can take them, he'll be in trouble with the administrator (for settling one creditor over another).
If the director doesn't give them to you and you take them you'll be in trouble with the police.0 -
The director has told us verbally that we can take them as they were purchased before he took over the company and he's not really interested anymore but we have nothing in writing.0
-
None of that makes them your property. It is still theft.0
-
Ok thank you all for your help.
It's just a shame that it is legal for him to allow us to work in good faith knowing full well he has no intention of paying us and we're unlikely to get anything from the administrator.
It will be a lean Christmas for all of us here.0 -
martinsurrey wrote: »If the director (and so the company) gives you the computers you can take them, he'll be in trouble with the administrator (for settling one creditor over another).
If the director doesn't give them to you and you take them you'll be in trouble with the police.
Genuine query - just because I'd like to know. Can see how the director would be in trouble if the company was in administration, but how does that work if he's only about to go into administration? After all, paying one bill before another is what any company normally does if it is still trading ... ?0 -
Then stop working...Ok thank you all for your help.
It's just a shame that it is legal for him to allow us to work in good faith knowing full well he has no intention of paying us and we're unlikely to get anything from the administrator.
It will be a lean Christmas for all of us here.
If you speak with the administrator they can ensure you are paid above other creditors for your help in closing down the business.
If not I'd just walk.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Genuine query - just because I'd like to know. Can see how the director would be in trouble if the company was in administration, but how does that work if he's only about to go into administration? After all, paying one bill before another is what any company normally does if it is still trading ... ?
he'd be in trouble as he KNOWS its going into administration, I guess its insolvant, makes it wrongful trading
http://www.hmrc.gov.uk/manuals/insmanual/ins44321.htm
in this trading involves anything to with company assets.
http://www.begbies-traynorgroup.com/articles/director-advice/what-is-the-difference-between-fraudulent-and-wrongful-trading
"If it is found that you have shown preference to one or two creditors over others, you may face questions as to your motives. The interests of creditors as a whole should be at the forefront of director actions, rather than individual creditors."0 -
OP, you are aware that once in administration you will be eligible to claim unpaid wages and notice pay from the government scheme if there is no money in the company? Assuming, of course, that you avoid stealing company assets!0
-
OP, you are aware that once in administration you will be eligible to claim unpaid wages and notice pay from the government scheme if there is no money in the company? Assuming, of course, that you avoid stealing company assets!
As sangie595 says you can claim this money from the government, does take a while though more info here https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177K Life & Family
- 257.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards