None payment of wages - options?

nomywell

Hi.

My employer has not yet payed my wages for Feb and as the wages depend on asset sale, it's still up in the air. I could see the writing on the wall a few months back when the same thing happened, so I am fortunate to have a new job lined up. I am 1 month into my 3 month notice and my new job has said I could start early so here's the question: As my employer has effectively breached my contract, can I walk away now? It's a very small start up business with a very unstable financial footing.

I did contact Acas and they were vague and stated that despite my employer breaching my contract, I would also be breaching mine. But surely, if I walked it would be because they broke my contract. Am I to be expected to work without wages? Can someone clarify at all?

Any advice most welcome.

Thanks.

tacpot12

You are not expected to work without wages, but unfortunately their breach does not remove your obligations to them. This link confirms this and gives you more ideas about what you can do to get the money you are owed: Breach of contract claims and counterclaims - how do they work? - Pure Employment Law

Practically if they are short of money, they are not going to be able to start an action against you, or pay for legal advice. If you want to leave early, it would be best to try to arrange this with the employer, and if they don't agree, tell them the date that you are leaving UNLESS they pay you what you are owed for February, so that both you know when your last day will be and they have a choice about whether to pay you the pay you are already owed. If they want to dismiss you immediately, you are entitled to pay in lieu of any notice that they are required to give you.

nomywell

Thanks for the advice and link tacpot12 that is what I was searching in vain to get. Much appreciated. 

Thrugelmir

Have a frank polite discussion with your employer. If the Company doesn't have the cash available they cannot pay you. A mutual compromise might be beneficial to all. 

nomywell

Well, the saga continues.

I spoke to my boss and requested that due to none payment of February's wages could I leave after serving just two of my three months notice as a compromise. He declined (as I am integral to their service), and assured my the money was due in on Tuesday this week. Well, here we are at close of play Wednesday and nothing. I simply cannot afford for this to continue indefinitely and with my wages now two weeks late with a list of increasingly farcical excuses. I am in a desperate financial situation now. My new job are happy for me to start whenever I want. Surely I cannot be expected to continue. Under these circumstances I just can't get my head around my obligations to them.

I guess an employment solicitor is my only option, but paying out money now is the last thing I want to do.

Help?  

Dakta

Can you afford to write it off and squeeze by for a while?

Not professional advice but if they can't pay you now I'd be suspicious of them not being able to pay in future, from what you've said of it not being the first time i would be getting worried the company is at risk or run with insufficient safety margins and getting money out of someone who can't pay is difficult - sorry, near impossible and even been in the legal right won't help a lot there should the worst happen to their business. If it doesn't then it will still be due and you can go through some motions to try and get it but for now I personally would feel your duty is to yourself, and everyones a business not a charity (we all have income and expenditure) and you are responsible for meeting your own so you need to be in a job thats paying.

Some people may disagree as it may cause bad blood between yourself and your former employees but if you can sacrifice a reference I'd be looking to jump earlier, normally I'm understanding of business needs but you can't not pay your staff and demand they stay. You can normally flex a bit of muscle on either when times get hard but when a company tries both it's not on.

MEM62

In your shoes I would be working on the basis that there is a very real risk that you will not be paid and make decisions accordingly.  I would probably give them an ultimatum that, if the salary is not paid immediately, you will not be working your notice period.