Employer unable to pay wages

sangie595

Yeah. That doesn't answer all of it. But enough. You will never see the money. This is called pheonixing. The new company has no obligation to pay the debts of the old one. He is being lied to. This one doesn't pay up, there'll be another company in the daughters/ cousins/ brother in laws name. I regret to say, it is still legal. It shouldn't be, but it is. If he ever sees the money he is owed up to date, I'll send £1000 to his favourite charity. This happens far too often. So far I have never donated the money, but I'm willing to do so!

Dragonfly74

Get out while he can then?
Would you try to get the unpaid wages then ?
I knew there was something dodgy going on! All them years of loyalty,makes me so angry.

Thanks for all your help

Kelly

sangie595

Yes, if he can get another job then do so as quickly as possible. Then try to get the wages. But anything prior to the new company is probably gone for good. And the chances of even getting anything owed by the new company is low. They will just do this all over again. There is nothing unusual about what has been done. Unfortunately. They have been conned. Just tell him to keep pushing for the money, and don't let on that he's looking for a way out. The longer he can keep the employer in the dark, the more chance there is of them paying at least something just to keep him and his colleagues hanging on in there. When he leaves, they have no incentive to pay. Make sure that you have records of everything. Come back once he has got another job and update us and we can talk him through the best options for trying to recover the money.

Dragonfly74

Thank you so much.

Yes I will tell him. It just doesn't seem right.

Kelly

Brighty

sangie595 wrote: »

But anything prior to the new company is probably gone for good.

If the new company took over in May, and the staff are only owed 3/4 weeks wages now and were paid up to date until May , then surely that's all owed by the new company, the old company owe them nothing?

Dragonfly74

They have been getting a week paid, then nothing, then up to date and this is what has been happening since then. It is now 3 almost 4 weeks now but there is no money to pay them apparently.

Mersey_2

sangie595 wrote: »

But I know exactly why I said these things - because I am correct.

Far from it.


Not only is it incorrect to assert - as you did Sangie595 - that:


"the cost of doing so [issuing/enforcement] would far exceed what is owed"


If you had provided that advice in a professional capacity it would be negligent.


I repeat: the average sum owed in wages was £2,800 and yet it only costs from £35 to issue and £100 to enforce. So not even close, never mind your false "far exceed" claim.


[It's also far speedier to obtain a CCJ and payment than go to an ET - not that you advised that either of course. Just the usual: advising claimants not to pursue their claims.]