Company shut down - not been paid

adele1982

Hello, I need some advice as I don't seem to be able to find an answer from anywhere!
I worked for a private day nursery from September 2018 to February 2019. The company had many issues, including not being able to pay staff and for some months we only got a partial wage (and then got the rest at a later date)
In February, things were not right and there was talk of the nursery closing down, however the owner said everything was going to be ok, but by about the 11th we got told there was no money to pay wages again!
So I decided to leave there and then, as they wanted us to continue working until the end of the month, without the certainty of being paid. I have a mortgage and bills to cover so I decided it was best to leave, rather than work for free. I did offer an alternative and said I would work day to day if I got paid for the days work, but was told it was not an option.
I am glad I left as, by the end of that week, the company folded.
I (along with other members of staff) have not been paid for the days we worked in February (Mine was 12 days in total, but others were more) The owner actually put out leaving date on our P45 as the 1st of February, which was incorrect, but I have managed to get that changed for my P45 through the accountant. I have chased the owner who has said she cant pay, spoken to her accountant for the business who said the owner is not doing things she should be etc etc. On the government website it says the business is dissolved.
How can I get my money back that I am owed? It has left me in a tight financial position, having to borrow money to cover my mortgage for the month (which has had a knock on effect)
The owner now refuses to reply to messages/phone so I really do not know how to solve this.
Any help you could offer would be greatly appreciated.
Thank you

getmore4less

What sort of company structure was it

Ltd private charity.....

Blatchford

If you are saying the company was dissolved then it must have been a limited liability company. That means, I'm afraid, that you'll never see your money. Had you still been an employee at the date of the dissolution, you'd have been able to claim as an employee under the government's Redundancy Payments Service. However, you weren't. It was understandable why you left, but that changed things. It makes you nothing more than a creditor, and as such if there is anything left, which there probably isn't, you might get a share of it, but it would almost certainly be a pittance.

adele1982

HI, thanks for your reply. It was a private limited company.

adele1982

OMG, that makes it even more annoying
So the people who worked up until the day it closed might still be able to claim for their money?

I think its disgusting that you can work for somewhere and them just not pay you. Oh well, I didn't think I would ever see that money, but didn't want to rule it out without checking.
Thanks
Adele

Comms69

adele1982 wrote: »

OMG, that makes it even more annoying
So the people who worked up until the day it closed might still be able to claim for their money?

I think its disgusting that you can work for somewhere and them just not pay you. Oh well, I didn't think I would ever see that money, but didn't want to rule it out without checking.
Thanks
Adele

Yes, that said, when I faced a similar quandary the OR treated me as still employed; and I received my payout, despite it officially being more than 3 weeks after I'd left.

Blatchford

Comms69 wrote: »

Yes, that said, when I faced a similar quandary the OR treated me as still employed; and I received my payout, despite it officially being more than 3 weeks after I'd left.

That is pretty rare, and it presupposes the involvement of an official receiver> Many small companies go bust without ever involving one, and technically we only know that the company is dissolved. Just because they owed money doesn't mean that they actually went bankrupt or into insolvency in legal terms. Unfortunately lots of small companies simply "disappear" leaving a trail of debt that nobody "owns".

Blatchford

adele1982 wrote: »

OMG, that makes it even more annoying
So the people who worked up until the day it closed might still be able to claim for their money?

I think its disgusting that you can work for somewhere and them just not pay you. Oh well, I didn't think I would ever see that money, but didn't want to rule it out without checking.
Thanks
Adele

I do agree, but the problem is that technically they can't just not pay you. It's a case of "blood" and "stone". You (and any other creditors) cannot get money where there is none. Employees, provided that they are employed at the point of insolvency (assuming that happened) can claim from the Redundancy Payments Service if there is no other money available. They also have the first call on any money the company may have or be able to realise. After employees are paid, then any money left is shared out amongst creditors in proportion to how much of the debt they own, and they may get a very small amount back. Past employees are only creditors and get no preferential treatment.