Company Closure

dontknowwhattodonext

Hi, the MD has mentioned the possibilt of closing the company, not due to liquidation as company is still viable, if this was happen, do you my employement rights stiill happenn, ie I am on 3 months notiice, would I get 3 months pay, or would that be it and no pay.

Marcon

If your notice period is 3 months, then you will either get notice (and work) the 3 months, or be paid in lieu by the company if it is still solvent. You may also be entitled to a redundancy payment depending on how long you've worked there and what your contract says (it could be better than statutory redundancy but can't be less).

If the company is insolvent, you should still get outstanding pay. See https://www.gov.uk/your-rights-if-your-employer-is-insolvent/apply-money-owed

Sandtree

dontknowwhattodonext said:

Hi, the MD has mentioned the possibilt of closing the company, not due to liquidation as company is still viable, if this was happen, do you my employement rights stiill happenn, ie I am on 3 months notiice, would I get 3 months pay, or would that be it and no pay.

The company would have to be liquidated, all companies do when they are closed down rather than just becoming dormant but from what you say it would be a solvent liquidation (so the shareholders will receive their percentage of the cash in the bank once all the assets are sold, debts settled etc).

Unless you agree otherwise (eg yo secure a new job who want you to start next month) you are entitled to your 3 months pay from the date they give you notice be that you continue to work for the three months or they allow you to leave early and give you cash in lieu of notice. 

Marcon

Sandtree said:

dontknowwhattodonext said:

Hi, the MD has mentioned the possibilt of closing the company, not due to liquidation as company is still viable, if this was happen, do you my employement rights stiill happenn, ie I am on 3 months notiice, would I get 3 months pay, or would that be it and no pay.

The company would have to be liquidated, all companies do when they are closed down rather than just becoming dormant but from what you say it would be a solvent liquidation (so the shareholders will receive their percentage of the cash in the bank once all the assets are sold, debts settled etc).

You can close a company in the sense of letting it stop trading, in which case it becomes dormant until you wake it up again - and that could be what is intended here. Understandably the terminology in OP's post is a bit vague. Whether that's the intention, or is is a solvent winding up, happily doesn't alter the answer: they should get their notice pay one way or another.

TBagpuss

You would be being made redundant, so you would be entitled to your notice and whatever statutory redundancy payment you qualified for, although if you have worked there for 2 years or less you wouldn't get anything for the redundancy, just your notice pay)