Tribunal award

Misty22

I was awarded a sum of money from a tribunal for notice pay which should have been 3 months but only got paid 3 weeks as I had only been there 3 years.  A tribunal awarded me and others 90 days pay for no notice given for the company to go into administration but we only receive 8 weeks of this as that is the maximum that the insolvency service can pay. 

I was further awarded the reminder of my notice pay which should have been 12 weeks pay (less the 3 weeks already paid) however they are refusing to pay as they have said that they have paid all that they can legally pay. However surely they should have to honour what the tribunal has awarded ?  Does anybody have any advice as to how to take this further please with the insolvency service or are they correct and fighting it is futile?  Thank you. 

Comms69

Oh come on now. The tribunal didnt order the insolvency service to pay you. It should'v ebeen obvious if the company is in administration there's no money left.

Undervalued

^^^^^^ Indeed.

I suspect what has happened here is that the tribunal has awarded what the employer would have been obliged to pay you had they still been in business. So theoretically the insolvent company now owes you that but you are in a long line of unsecured creditors.

That doesn't carry over to the insolvency service which just protects your minimum statutory employment rights (even then with some limitations).

superbigal

If someone ever wanted to actually chase the balance of the protective award that the insolvency service cannot pay.
I have often wondered if you could sue the administrators. Technically they are the ones who unlawfully made you redundant.
Also as the parasites they often are (imo), they have plenty money.  You should read up on their hourly charges.  That's often where the vast majority of what is left ends up going.

Undervalued

superbigal said:

If someone ever wanted to actually chase the balance of the protective award that the insolvency service cannot pay.
I have often wondered if you could sue the administrators. Technically they are the ones who unlawfully made you redundant.
Also as the parasites they often are (imo), they have plenty money.  You should read up on their hourly charges.  That's often where the vast majority of what is left ends up going.

Whilst I agree with the general sentiment that professional fees can seem very high I don't see why you feel the administrators "unlawfully" made the OP redundant.

As I read the OP he was made redundant by the company before they went bust. However even if my reading is wrong, the administrators have an equal duty to all creditors of the company, not just the employees. If there is not the money (yes, after fees) then they cannot be paid. Had the company not gone bust then yes, he was entitled to more than the insolvency service (i.e you and me) are allowed by law to pay. So, as I said earlier, he is just one of (presumably) many unsecured creditors waiting in line for a small proportion of what they are owed.

No consolation but the OP will see significantly more of of his entitlement, thanks to the insolvency service, than other creditors who will no doubt have employees and suppliers to pay - and so it goes on. 

Sadly we are going to be reading a lot of this in the next year or so.

superbigal

Undervalued said:

superbigal said:

If someone ever wanted to actually chase the balance of the protective award that the insolvency service cannot pay.
I have often wondered if you could sue the administrators. Technically they are the ones who unlawfully made you redundant.
Also as the parasites they often are (imo), they have plenty money.  You should read up on their hourly charges.  That's often where the vast majority of what is left ends up going.

Whilst I agree with the general sentiment that professional fees can seem very high I don't see why you feel the administrators "unlawfully" made the OP redundant.

As I read the OP he was made redundant by the company before they went bust. However even if my reading is wrong, the administrators have an equal duty to all creditors of the company, not just the employees. If there is not the money (yes, after fees) then they cannot be paid. Had the company not gone bust then yes, he was entitled to more than the insolvency service (i.e you and me) are allowed by law to pay. So, as I said earlier, he is just one of (presumably) many unsecured creditors waiting in line for a small proportion of what they are owed.

No consolation but the OP will see significantly more of of his entitlement, thanks to the insolvency service, than other creditors who will no doubt have employees and suppliers to pay - and so it goes on. 

Sadly we are going to be reading a lot of this in the next year or so.

Your explanation is 100% apart from the point I make.
The law says consultation must take place.
This is why administrators never turn up to defend these cases (If they made the redundancies) as they acted against employment law.
It is a simple fact.

Of course their job is often going to mean they have to take this action for the benefit of many others.

I am just dismayed when I read that Auntie Jean the lowest clerk in the Administrators office is billed out at £200 an hour or whatever.  I do seriously believe they often do a "little" more work than they need too. Very difficult to prove.
Imo their fees should be capped so they never suck the vast majority of any "cash" that they manage to lay their hands on for creditors. I dont really know the ins and out of the rules but was involved in 1 administration where something like half a million was raised and the "professionals" made of with around £200,000

Undervalued

superbigal said:

Undervalued said:

superbigal said:

If someone ever wanted to actually chase the balance of the protective award that the insolvency service cannot pay.
I have often wondered if you could sue the administrators. Technically they are the ones who unlawfully made you redundant.
Also as the parasites they often are (imo), they have plenty money.  You should read up on their hourly charges.  That's often where the vast majority of what is left ends up going.

Whilst I agree with the general sentiment that professional fees can seem very high I don't see why you feel the administrators "unlawfully" made the OP redundant.

As I read the OP he was made redundant by the company before they went bust. However even if my reading is wrong, the administrators have an equal duty to all creditors of the company, not just the employees. If there is not the money (yes, after fees) then they cannot be paid. Had the company not gone bust then yes, he was entitled to more than the insolvency service (i.e you and me) are allowed by law to pay. So, as I said earlier, he is just one of (presumably) many unsecured creditors waiting in line for a small proportion of what they are owed.

No consolation but the OP will see significantly more of of his entitlement, thanks to the insolvency service, than other creditors who will no doubt have employees and suppliers to pay - and so it goes on. 

Sadly we are going to be reading a lot of this in the next year or so.

Your explanation is 100% apart from the point I make.
The law says consultation must take place.
This is why administrators never turn up to defend these cases (If they made the redundancies) as they acted against employment law.
It is a simple fact.

Of course their job is often going to mean they have to take this action for the benefit of many others.

I am just dismayed when I read that Auntie Jean the lowest clerk in the Administrators office is billed out at £200 an hour or whatever.  I do seriously believe they often do a "little" more work than they need too. Very difficult to prove.
Imo their fees should be capped so they never suck the vast majority of any "cash" that they manage to lay their hands on for creditors. I dont really know the ins and out of the rules but was involved in 1 administration where something like half a million was raised and the "professionals" made of with around £200,000

Indeed, IF the administrators made the redundancies. I am far from clear that they did.

Comms69

superbigal said:

Undervalued said:

superbigal said:

If someone ever wanted to actually chase the balance of the protective award that the insolvency service cannot pay.
I have often wondered if you could sue the administrators. Technically they are the ones who unlawfully made you redundant.
Also as the parasites they often are (imo), they have plenty money.  You should read up on their hourly charges.  That's often where the vast majority of what is left ends up going.

Whilst I agree with the general sentiment that professional fees can seem very high I don't see why you feel the administrators "unlawfully" made the OP redundant.

As I read the OP he was made redundant by the company before they went bust. However even if my reading is wrong, the administrators have an equal duty to all creditors of the company, not just the employees. If there is not the money (yes, after fees) then they cannot be paid. Had the company not gone bust then yes, he was entitled to more than the insolvency service (i.e you and me) are allowed by law to pay. So, as I said earlier, he is just one of (presumably) many unsecured creditors waiting in line for a small proportion of what they are owed.

No consolation but the OP will see significantly more of of his entitlement, thanks to the insolvency service, than other creditors who will no doubt have employees and suppliers to pay - and so it goes on. 

Sadly we are going to be reading a lot of this in the next year or so.

Your explanation is 100% apart from the point I make.
The law says consultation must take place.
This is why administrators never turn up to defend these cases (If they made the redundancies) as they acted against employment law.
It is a simple fact.

Of course their job is often going to mean they have to take this action for the benefit of many others.

I am just dismayed when I read that Auntie Jean the lowest clerk in the Administrators office is billed out at £200 an hour or whatever.  I do seriously believe they often do a "little" more work than they need too. Very difficult to prove.
Imo their fees should be capped so they never suck the vast majority of any "cash" that they manage to lay their hands on for creditors. I dont really know the ins and out of the rules but was involved in 1 administration where something like half a million was raised and the "professionals" made of with around £200,000

You are incorrect. Your simple fact, is not a fact. Administrators are not employers, they have zero duty of care to employees.