Advice please 16year old and redundancy due to insolvency

Choccygirl123

I'm hoping someone may be able to give me some advice please?

My 16year old has lost her job due to the business going into insolvency. She had no notice and is owed a few hours of holiday pay. It's not a huge amount, but it's still owed.

She's received correspondence today with regards to a virtual meeting and the formal paperwork for debtors. I thought she'd claim through the redundancy fund, rather than be involved with voting etc and being part of a liquids committee. The paper is very detailed and I really don't know how we proceed, not sure she'd get a vote etc at 16years old. 

Any advice would be greatly recieved.

Choccygirl123

I should have mentioned it's only a part-term weekend job whilst she's at school.

lincroft1710

Unless your daughter has worked for her employer for a minimum of 2 years there is no legal entitlement to redundancy payment.

Choccygirl123

lincroft1710 said:

Unless your daughter has worked for her employer for a minimum of 2 years there is no legal entitlement to redundancy payment.

That's what we thought although they do owe her holiday pay and sone hours. I've written to the company handling the liquidation to ask for advice. It's not huge amount of money, but to a 16 year old it is. My concern is if she goes through as a debtor she'll get a tiny percentage of what is owed.

lincroft1710

As an employee who is owed money, she has become a preferential creditor of the company. Which means that any unpaid wages (up to £800) and holiday pay are entitled to be paid. Of course this will depend on number of employees owed money and what assets the company has. If there is little actual cash and assets have to be sold to pay the company's debts, it could me some time before she receives any money

MalMonroe

Choccygirl123 said:

lincroft1710 said:

Unless your daughter has worked for her employer for a minimum of 2 years there is no legal entitlement to redundancy payment.

That's what we thought although they do owe her holiday pay and some hours. I've written to the company handling the liquidation to ask for advice. It's not huge amount of money, but to a 16 year old it is. My concern is if she goes through as a debtor she'll get a tiny percentage of what is owed.

Surely your daughter would be one of many creditors, not debtors? She will probably, sorry to say, be at the end of the line when it comes to payouts and there may be nothing left at all. It will also take some time to sort out. 

If it were me, and I'm normally one to chase anything I'm owed, in this case I'd say it's going to be far more trouble and worry to chase than to just let it go. Or wait. You can't get blood from a stone.

Also if it were me, I'd give my daughter the money myself, so she didn't lose out. Your daughter's doing her very best and she's only 16. When my daughter was that age she didn't work - but was working very hard scholastically towards 10 GCSEs in prep for A Levels. Sometimes our kids just need a break. And a helping hand when others let them down. 

Or am I just an old softie? (Yes, I am. And getting softer the older I get, as well.)

JCS1

MalMonroe said:

Choccygirl123 said:

lincroft1710 said:

Unless your daughter has worked for her employer for a minimum of 2 years there is no legal entitlement to redundancy payment.

That's what we thought although they do owe her holiday pay and some hours. I've written to the company handling the liquidation to ask for advice. It's not huge amount of money, but to a 16 year old it is. My concern is if she goes through as a debtor she'll get a tiny percentage of what is owed.

Surely your daughter would be one of many creditors, not debtors? She will probably, sorry to say, be at the end of the line when it comes to payouts and there may be nothing left at all. It will also take some time to sort out. 

If it were me, and I'm normally one to chase anything I'm owed, in this case I'd say it's going to be far more trouble and worry to chase than to just let it go. Or wait. You can't get blood from a stone.

Also if it were me, I'd give my daughter the money myself, so she didn't lose out. Your daughter's doing her very best and she's only 16. When my daughter was that age she didn't work - but was working very hard scholastically towards 10 GCSEs in prep for A Levels. Sometimes our kids just need a break. And a helping hand when others let them down. 

Or am I just an old softie? (Yes, I am. And getting softer the older I get, as well.)

Employee payments are preferential payment, so she would be paid first, not last.

However, if there is insufficient funds, she can claim from Redundancy Payments Service, as they also pay outstanding monies not just Redundancy money.  Further details here:

https://www.gov.uk/claim-redundancy

Choccygirl123

Thank you for all the messages, it seems it's a minefield. I've spoken to the company who are sorting the liquidation. The good news is that she doesn't need to fill in the liquidation paperwork nor does she have to vote.

They've confirmed she'll receive her money from the Redundancy fund. As I've said it's not a huge amount of cash probably £350 max, but she's worked for those hours so of course I'm going to chase it for her. She's been working p/t for 2years and has decent amount of savings. I have offered to pay her the cash she's missed out on, but she said she's ok and will wait to see what happens with redundancy fund.