Boss can't afford to pay any statutory redundancy money but is NOT insolvent
in Redundancy & redundancy planning
8 replies 306 views
The sole trader business I have worked for for 22 years is closing. I am being made redundant on 1st August. The boss cannot afford to pay his staff any statutory redundancy entitlements. He is going to wait until one of his creditors makes him bankrupt - which could take months, whereas I only have 6 months to make a claim to the Insolvency Service. However, as he is not OFFICIALLY insolvent, and I don't have a CN ref no . .. I am unable to make a claim. My boss has no assets, therefore I assume there is no point going forward with an Employment Tribunal case. Is this correct? If so . . . what CAN I do? Any advice would be much appreciated . . . I seem to be between a rock and a hard place through no fault of my own.
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Sounds to me like the boss is counting on a delay while he squirrels away what assets and equity he has beyond reach?
Could you accept goods in lieu of redundancy? Maybe the boss has a nice car that would be better on your drive than his?
I add that I have no knowledge on this so above is only my lay-man thoughts.
Sharpe106 - thank you for the clarification. Fingers crossed the RPS will give him financial assistance.