Redundancy -Company Plans To Go Insolvent

jdybnsn

My daughter has worked part time at a pub (a Ltd Company) for the past 4 years (she is 21). She has no written contract but she is on their payroll as she has received P60s and payslips etc. She does not work fixed hours. Her boss is finishing his contract with the freeholder and leaving the industry. He has a house in another town and has told staff he will be changing his contact details, removing any social media accounts etc.  He has also told staff that he will not be paying them the last week of work as he is intending to make the business insolvent as it has run up big debts (I suspect he has been creaming off a nice salary for the past couple of years as he has purchased a house and will be going on holiday after he leaves). He has also told them they will be able to claim any holiday pay owing, redundancy etc off the Government and he will provide my daughter with a written contract so she can make her claim. There is no new company taking over the pub lease immediately so redundancy is her only option.
 I suspect however, this exit plan has been planned well in advance. I noticed on Companies House he took himself off the ownership of the business two years ago (even though he runs it) and only his wife's name remains as a director. He has certainly been telling everybody that he was intending to pack it in this Summer, for the past two years.

Now my daughter is not overly bothered about losing her job, as she is at Uni and she would walk into any other part time job. However, she is conflicted about knowingly working "for nothing" in her final week and going through the process of having to claiming her entitlements off the state. I guess the only plus side is that it won't come as a shock at the end (he seems to think he is doing them a huge favour !). Quite frankly I don't quite know what to make of it all - especially as he used to bang on about people on benefits - and then here he is expecting the state to pay HIS responsibilities If she doesn't work the last week (unbelievably) she feels she is letting him down and risks not being able to claim any redundancy monies etc She is a vital part of their team as there are not many of the staff left who are as experienced as her.

What also sticks in my throat is that a long standing customer of his has organised a huge whip round (I believe it is currently totalling about £1000+) plus gifts to present to this couple to thank them for their service to the community (they've run the pub for 15 years) - if only they knew. 

She still hasn't had her written contract yet - nor has any idea how many hours he will put her down for as it varies every week. She is worried he will put her down as zero hours contract and that she won't actually get anything.

JReacher1

Sounds like she is on a zero hours contract but that doesn’t matter. They’ll just take the average your daughter has worked for the last 12 weeks and use that to calculate redundancy pay. 

I would also phone in sick for the last week

penners324

Report the company to HMRC and Companies House for PAYE fraud and trading whilst insolvent 

diystarter7

I fear your daughter will get nothing.
Many bad business people around that fold one co and start another. It's nothing new and sadly set to carry on.

Ath_Wat

jdybnsn said:

What also sticks in my throat is that a long standing customer of his has organised a huge whip round (I believe it is currently totalling about £1000+) plus gifts to present to this couple to thank them for their service to the community (they've run the pub for 15 years) - if only they knew. 

Tell them?

mumf

There will be a form to fill from the insolvency practitioner. The National Insurance fund will be any lost wages/ holiday/ redundancy and  notice payments. It happened to me 10 years ago. It took about a month for my losses to be paid. My scumbag boss made plenty,bought a holiday home etc. whilst the government,sorry taxpayers,paid us. It’s wrong , and still stings. 

superbigal

He has to take the company into Administration.  If he just closes the doors a different problem.