Liquidation Changed to Furlough and now Redundancy.

2

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  • bujin
    bujin Posts: 242 Forumite
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    sharpe106 said:
    By the sounds of it whatever happens she is not going to pay voluntarily , either they have no money or do not want to. Either was is irrelevant to your daughter. 
    At her meeting she needs to find out

    1. How do they plan to pay for March wages
    2. Does the company plan to be liquidated
    3. If they do not plan to be liquidated how do they plan on paying the redundancy pay. 





    Yep, I guess that's its in a nutshell really. Thanks. Will update just out of interest.

  • Reggie01
    Reggie01 Posts: 31 Forumite
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    What does it say on Companies House Gov website. Click on  find company information, then click start now and type in the company or company number.  Click on filing history and you'll be able to see if they are in administration or otherwise. Bear in mind the service isn't always up to date. If they do bring the administrators in then your daughter should get contacted by the Insolvency Service automatically. Also if there were 20 or more people employed she could claim the Protective Award if they are in administration.
  • bujin
    bujin Posts: 242 Forumite
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    edited 20 June 2020 at 4:18PM
    Thanks. Took a look and the Company's status is shown as currently active. Some of the financial stuff looks quite telling in the lack of equity and the sum of money owed to creditors. I think it's fairly obvious that even with liquidation, the creditors I guess would take any monies before staff.
    Not sure of the number of staff but will check that.
  • sharpe106
    sharpe106 Posts: 3,559 Forumite
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    I would not worry to much about the status on there at the moment as it will take time to change, be something to keep an eye for in the future if your daughter ends up getting nothing from them.  Secure creditors go above staff. 
  • General_Grant
    General_Grant Posts: 4,834 Forumite
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    edited 20 June 2020 at 5:51PM
    sharpe106 said:
    I would not worry to much about the status on there at the moment as it will take time to change, be something to keep an eye for in the future if your daughter ends up getting nothing from them.  Secure creditors go above staff. 
    And employees are Preferential Creditors (for arrears of pay and holiday pay), ahead of unsecured creditors.
  • Reggie01
    Reggie01 Posts: 31 Forumite
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    Check out 'your rights if your Employer is insolvent' on the Gov website. The insolvency service pay capped amount at £538 per week for statutory redundancy and arrears of pay and holiday pay accrued but not taken. If you earn more than that you put a claim in against the administrators. I was advised by the administrators that notice period pay, protective award, enhanced redundancy (not sure about statutory redundancy) was not preferential (can still be claimed but will be classed as unsecured and will only be paid a proportion if there is any left over after secured have been paid; unlikely if finances are as poor as you think they are!) but that the weekly pay of arrears and holiday accrued above what the insolvency service pay was preferential. So if say for example you earn £600 per week. Insolvency service pay £538 and the £62 is a preferential claim. Also as my above post make sure she claims the Protective Award if there are at least 20 people working there and they do fall into administration. Regarding Companies House the company I was working for updated on Companies House about 3 weeks after they went into administration. That was well before all this Coronavirus.
  • bujin
    bujin Posts: 242 Forumite
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    Thanks for all this. Just a question when the staff were originally going to be made redundant due to Insolvency they were told that all payments including the non payment of wages would be paid out of the Insolvency/Govt. Is this correct?
    Reggie01 said:
    The insolvency service pay capped amount at £538 per week for statutory redundancy and arrears of pay and holiday pay accrued but not taken. If you earn more than that you put a claim in against the administrators. I was advised by the administrators that notice period pay, protective award, enhanced redundancy (not sure about statutory redundancy) was not preferential (can still be claimed but will be classed as unsecured and will only be paid a proportion if there is any left over after secured have been paid; unlikely if finances are as poor as you think they are!) but that the weekly pay of arrears and holiday accrued above what the insolvency service pay was preferential.

    So where you say that srvice pay is capped ar £538 is that for each aspect, ie service pay or arrears of pay or holiday pay. Or is it all these three together are capped at £538?  There's a separate application for Notice Period pay once redundnacy has been paid according the .gov website
  • Reggie01
    Reggie01 Posts: 31 Forumite
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    Yes the insolvency service (Government service) pay you for;
    1) redundancy pay (1 week per full year if there at least 2 years, may be different depending on age),
    2) holiday pay (accrued but not taken),
    3) arrears of pay (capped at 8 weeks)
     4)  statutory notice pay (1 week per year)
    Pay is capped at £538 per week for each of the 4 above items. Add the total weeks of all 4 up and x it by £538 and assuming the insolvency service agree with the information you provide then that's what you'll get from them. 

    Yes they will write to you asking that you fill each part in online, with the notice pay being paid separately.

    If you apply for the Protective Award that counts as arrears of pay and is capped at 8 weeks minus what you've already been paid against arrears of pay.

    I'm guessing you've already read the Gov website on it. If not, this is what it should say in the address bar after .uk (government/publications/redundancy-payments-from-the-insolvency-service/explaining-your-redundancy-payment)
  • bujin
    bujin Posts: 242 Forumite
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    edited 22 June 2020 at 10:09AM
    Brilliant thank you. I'm presuming Holiday isn't accrued during Furlough?
  • bujin
    bujin Posts: 242 Forumite
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    Secondly, if she's made redundant at the end of June having been on Furlough since March 27th, will her redundancy start at June end or will it be from the date she started Furlough. Many thanks again.
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