Liquidation Changed to Furlough and now Redundancy.

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  • sharpe106
    sharpe106 Posts: 3,559 Forumite
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    Holiday is accrued during furlough unless the employer makes them take it. The redundancy starts on the day they are actually told, not the day it is mentioned as a possibility. Or if the company is liquidated on that date if they have not already been told. 
  • TBagpuss
    TBagpuss Posts: 11,199 Forumite
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    During furlough all your normal employment rights continue so you do accrue holiday. If the employer requires you to take holiday (which they can do, provided they give the correct notice) they have to pay you your full wages for the holiday period
    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • bujin
    bujin Posts: 242 Forumite
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    Thanks All. So the owner has realised after having had afew meeting with her staff now that she hasn't really given them enough information beforehand. This new information in the form of an email makes a lot more sense about what is actually happening. So she (the owner) has informed staff that she has entered a structuring arrangment with her Creditors (CVA) which has been accepted. She has explained that this means in effect the Company is Insolvent but can carry on trading, but staff would be given Insolvency reference numbers when applying for Redundancies.
    This makes a lot more sense and maybe what Sharpe106 was hinting at on page 1. One statement though I wanted to just clarify. The owner has said that;

         " Notice will be given according to individual contract entitlements and you will remain furloughed for this period of time".

    Do we understand this to mean, that in effect her notice pay will actually be furlough pay ie 80% of her wage. So if she's given 4 weeks notice she'll get 4 weeks furlough as her notice Pay?
    Thanks again everyone this has all been a great help.

  • sharpe106
    sharpe106 Posts: 3,559 Forumite
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    Is the company paying the notice period or do you have to claim it from the insolvency service? If the later than the simple answer it is 100% if the former not quite so clear. A link to have a read of

     https://www.employmentcasesupdate.co.uk/site.aspx?i=ed40723

     






  • bujin
    bujin Posts: 242 Forumite
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    Just a quick update. She has now stated to some satff that she expects them to take Holoiday in their Notice period. I know she can legally do this but does she need to give the same advance notice for example, if she asks them to take 5 days she'd have to give them 10 days warning?
  • bujin
    bujin Posts: 242 Forumite
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    I'm updating this ongoing problem in the hope for additional advice. So a quick recap is my daughter was told on March 27th she was along with everyone else in the small company being made redundant. Then at the end of March/Early April was told they were being fruloughed instead, then they were told in June they would be being made redundant and after some questioning the owner has informed staff that she has entered a structuring arrangment with her Creditors (CVA) which has been accepted.
    They were told that their furlough would end July 31st,they were interviewed individually via Zoom outlining the redundancy etc, they then waited for instructions on who to apply to for their redundancy monies.

    As nothing was heard from the owner following this my daughter contacted her last week asking for details of the Insolvency Partner. The owner then sent an email to all staff saying that the CVA hadn't been finalised and this could take another 2/3 months!? Consequently 2/3 months of no money for the employees.

    If there is no CVA or other Insolvency plan set up, couldn't the employees remain on Furlough given that there has been no official declaration by the Company in legal terms? My daughter has set up another free consultation with a solicitor but that probably won't be for about 3 weeks, so we thought we'd resurrect this post.
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