Taking a foreign employer to Small Claims Court

JD2018

I worked for an EU based employer and am based in the UK. I believe they owe me a sum of money and am looking to recover this through the small claims court. 

The employer has a UK establishment on companies house which is just a registered address with nothing really going through the books. 

If I am successful in my claim (I think they are just going to ignore it) - Will it even me enforceable? 

(I’m not going to go into specifics about why I believe money is owed etc)

Marcon

JD2018 said:

I worked for an EU based employer and am based in the UK. I believe they owe me a sum of money and am looking to recover this through the small claims court. 

The employer has a UK establishment on companies house which is just a registered address with nothing really going through the books. 

If I am successful in my claim (I think they are just going to ignore it) - Will it even me enforceable? 

(I’m not going to go into specifics about why I believe money is owed etc)

Where is the EU based employer based - is the 'registered address' the registered office of the company against whom you have a claim? If 'yes', does the company have any assets in the UK?

JD2018

Marcon said:

JD2018 said:

I worked for an EU based employer and am based in the UK. I believe they owe me a sum of money and am looking to recover this through the small claims court. 

The employer has a UK establishment on companies house which is just a registered address with nothing really going through the books. 

If I am successful in my claim (I think they are just going to ignore it) - Will it even me enforceable? 

(I’m not going to go into specifics about why I believe money is owed etc)

Where is the EU based employer based - is the 'registered address' the registered office of the company against whom you have a claim? If 'yes', does the company have any assets in the UK?

Netherlands - The registered address is the registered office of the same company - They do not have any assets listed in the UK - despite half of their workforce and about 80% of their business being done in the UK. 

SiliconChip

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

JD2018

SiliconChip said:

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

Thanks - I will look to go down these routes if there is no response through SCC. I was hoping it’d be in their best interests to not have a CCJ registered against their UK entity, but maybe they aren’t fussed. 

Marcon

JD2018 said:

SiliconChip said:

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

Thanks - I will look to go down these routes if there is no response through SCC. I was hoping it’d be in their best interests to not have a CCJ registered against their UK entity, but maybe they aren’t fussed. 

Depending on the industry which they operate, it might not matter to them...but from what you've said above, do I deduce this is a company based in the Netherlands but incorporated in the UK?

JD2018

Marcon said:

JD2018 said:

SiliconChip said:

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

Thanks - I will look to go down these routes if there is no response through SCC. I was hoping it’d be in their best interests to not have a CCJ registered against their UK entity, but maybe they aren’t fussed. 

Depending on the industry which they operate, it might not matter to them...but from what you've said above, do I deduce this is a company based in the Netherlands but incorporated in the UK?

Public Sector NHS - So not a particularly great look for them although I doubt anyone checks. 

Yes you are correct, however i’m not sure what the reasons for them doing this was other than to tell customers “We are a UK registered business”. At some point I think they will open an actual UK office. Their current registered address is a solicitors in London that must do the paperwork for them. 

Marcon

JD2018 said:

Marcon said:

JD2018 said:

SiliconChip said:

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

Thanks - I will look to go down these routes if there is no response through SCC. I was hoping it’d be in their best interests to not have a CCJ registered against their UK entity, but maybe they aren’t fussed. 

Depending on the industry which they operate, it might not matter to them...but from what you've said above, do I deduce this is a company based in the Netherlands but incorporated in the UK?

Public Sector NHS - So not a particularly great look for them although I doubt anyone checks. 

Yes you are correct, however i’m not sure what the reasons for them doing this was other than to tell customers “We are a UK registered business”. At some point I think they will open an actual UK office. Their current registered address is a solicitors in London that must do the paperwork for them. 

Check and see if the UK company has any assets (their balance sheet will tell you) and if so whether you can tell where these are geographically: https://www.gov.uk/get-information-about-a-company

Undervalued

SiliconChip said:

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

But it is not free if you have to take action to enforce a judgement (assuming you win). At that point you have to pay an up front fee for either bailiffs or high court enforcement agents, which will be added to what is owed, assuming they are successful. 

There is an age old adage which is sadly still true toady - Never sue those that can't or won't pay!

JD2018

Marcon said:

JD2018 said:

Marcon said:

JD2018 said:

SiliconChip said:

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

Thanks - I will look to go down these routes if there is no response through SCC. I was hoping it’d be in their best interests to not have a CCJ registered against their UK entity, but maybe they aren’t fussed. 

Depending on the industry which they operate, it might not matter to them...but from what you've said above, do I deduce this is a company based in the Netherlands but incorporated in the UK?

Public Sector NHS - So not a particularly great look for them although I doubt anyone checks. 

Yes you are correct, however i’m not sure what the reasons for them doing this was other than to tell customers “We are a UK registered business”. At some point I think they will open an actual UK office. Their current registered address is a solicitors in London that must do the paperwork for them. 

Check and see if the UK company has any assets (their balance sheet will tell you) and if so whether you can tell where these are geographically: https://www.gov.uk/get-information-about-a-company

The UK company has no assets whatsoever - But this is a company that I achieved 1m pounds worth of revenue for in the past 12 months. That money I assume goes straight to their Netherlands bank account. 

It still cost me £500 to take this to the Small Claims Court. 

I was hoping that they would maybe rather pay up than get a CCJ against the UK Company. 

Would any action against the company impact the registered director? 

Marcon

JD2018 said:

Marcon said:

JD2018 said:

Marcon said:

JD2018 said:

SiliconChip said:

You're probably better considering action in The Netherlands in that case, perhaps using the European Small Claims procedure if that's still possible from the UK (and if your claim is for less than EUR 5,000).

https://europa.eu/youreurope/business/dealing-with-customers/solving-disputes/european-small-claims-procedure/index_en.htm 

Another possible avenue to explore could be an Employment Tribunal, which is free to use, but has very strict time limits for starting a claim.

https://www.gov.uk/employment-tribunals

Thanks - I will look to go down these routes if there is no response through SCC. I was hoping it’d be in their best interests to not have a CCJ registered against their UK entity, but maybe they aren’t fussed. 

Depending on the industry which they operate, it might not matter to them...but from what you've said above, do I deduce this is a company based in the Netherlands but incorporated in the UK?

Public Sector NHS - So not a particularly great look for them although I doubt anyone checks. 

Yes you are correct, however i’m not sure what the reasons for them doing this was other than to tell customers “We are a UK registered business”. At some point I think they will open an actual UK office. Their current registered address is a solicitors in London that must do the paperwork for them. 

Check and see if the UK company has any assets (their balance sheet will tell you) and if so whether you can tell where these are geographically: https://www.gov.uk/get-information-about-a-company

The UK company has no assets whatsoever - But this is a company that I achieved 1m pounds worth of revenue for in the past 12 months. That money I assume goes straight to their Netherlands bank account. 

It still cost me £500 to take this to the Small Claims Court. 

I was hoping that they would maybe rather pay up than get a CCJ against the UK Company. 

Would any action against the company impact the registered director? 

Not usually - they are protected by what is known as the 'corporate veil'. There are some circumstances in which this veil can be pierced and action taken against a director, even when there is only one director and that one director is effectively 'the company'. The most helpful/recent article I could find was this, which summarises the position well: https://www.foxwilliams.com/2022/03/01/director-responsibility-10-ways-a-director-could-be-held-personally-liable-in-2022/

I'm a bit puzzled by what you are describing. Is the name of the UK company exactly the same as the company by whom you were employed?