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Redundancy with no consultation at all

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  • richy4
    richy4 Posts: 146 Forumite
    She's not a Union member. However seems little reason or worth in even being one anyway as they seem to just be turning a blind eye.

    On Monday she intends to bring it up with a number of people as the company is not currently insolvent or in administration - checked on Companies House. They are simply closing down operations. She suspects that on 30th November (intended close of operations) that the company will just declare itself bankrupt having moved all its cash elsewhere. Is this possible? Surely not or as a previous poster said, every company in the country would do it.

    If they continue in this manner what will happen? I assume that they can attempt to screw the staff over by trying not to pay but the Government won't be so stupid and it will be like the Philip Green situation with the BHS pensions, the Government will tell the company to pay up?
  • sangie595
    sangie595 Posts: 6,092 Forumite
    richy4 wrote: »
    She's not a Union member. However seems little reason or worth in even being one anyway as they seem to just be turning a blind eye. Well if she isn't a member, she doesn't know what they are doing. They only have to look after their own members interests. Perhaps the union know more than you think about what will happen.

    On Monday she intends to bring it up with a number of people as the company is not currently insolvent or in administration - checked on Companies House. They are simply closing down operations. She suspects that on 30th November (intended close of operations) that the company will just declare itself bankrupt having moved all its cash elsewhere. Is this possible? Surely not or as a previous poster said, every company in the country would do it.Yes it is possible. And yes, it does happen.

    If they continue in this manner what will happen? I assume that they can attempt to screw the staff over by trying not to pay but the Government won't be so stupid and it will be like the Philip Green situation with the BHS pensions, the Government will tell the company to pay up? This isn't really a "government scheme" - it is a national insurance scheme. The government can tell people anything they want - since the have no power to enforce what they say on the matter. If a company refuses to become insolvent and simple ceases trading, nothing happens. The national insurance scheme won't pay up. The employees will be forced to make tribunal claims and attempt to enforce payment.
    I am afraid that there really isn't anything anyone can do about this if there is no information. You will just have to see what happens later in the month. You cannot know whether they will declare insolvency or not right now.
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