Employment Tribunal Award

banjaxed_48

Hello, 

This is my first post on this forum and I’ll try to keep this short…

After four years waiting for a tribunal hearing I can now say I was unfairly dismissed. My notice pay and expenses were withheld from me (around £20,000).

A few months before the hearing the respondent (no longer trading) sold all of their remaining assets of the company for over £300K. After selling the assets they then chose to go into voluntary liquidation. 

Four days after liquidators were appointed, I was informed by the respondent that there were no assets left in the company and all the money had gone. However they have not given any financial breakdown/explanation of where the £300K went to.

Naturally I added myself as a creditor and have raised my concerns with the liquidator, who courteously said they would investigate and get back to me by the end of April (’23). 

So far, I haven’t heard anything further and, having worked for the respondent, I am sure he is cooking up some story to justify where all the money has gone.  

In anticipation of being lied to, who does one turn to in such circumstances? My solicitor has said it isn’t his area of expertise, although he hasn’t offered any suggestions who can help. Even the employment judge gave me a tip that, as a creditor, I have a right to see a breakdown of where all monies went and challenge this. 

Is there someone or a field that deals with this type of investigation/challenge? It’s beyond me, but your thoughts would be very much appreciated. 

Banjaxed (well and truly)

P.S. The respondent sent up a new company at the same time as appointing the liquidators 

Marcon

banjaxed_48 said:

Hello, 

This is my first post on this forum and I’ll try to keep this short…

After four years waiting for a tribunal hearing I can now say I was unfairly dismissed. My notice pay and expenses were withheld from me (around £20,000).

A few months before the hearing the respondent (no longer trading) sold all of their remaining assets of the company for over £300K. After selling the assets they then chose to go into voluntary liquidation. Creditors or Members Voluntary Liquidation?

Four days after liquidators were appointed, I was informed by the respondent that there were no assets left in the company and all the money had gone. However they have not given any financial breakdown/explanation of where the £300K went to.

Naturally I added myself as a creditor and have raised my concerns with the liquidator, who courteously said they would investigate and get back to me by the end of April (’23). Chase them and ask when they will provide the promised information.

So far, I haven’t heard anything further and, having worked for the respondent, I am sure he is cooking up some story to justify where all the money has gone.  

In anticipation of being lied to, who does one turn to in such circumstances? My solicitor has said it isn’t his area of expertise, although he hasn’t offered any suggestions who can help. Then ask him to give you the necessary guidance in terms of finding the best person to assist, should you need help.

Even the employment judge gave me a tip that, as a creditor, I have a right to see a breakdown of where all monies went and challenge this. 

Is there someone or a field that deals with this type of investigation/challenge? It’s beyond me, but your thoughts would be very much appreciated. 

Banjaxed (well and truly)

P.S. The respondent sent up a new company at the same time as appointing the liquidators Now there's a surprise (not)

Until you see the breakdown of where the money went, you're a bit stuck, so you do need to chase the liquidators for this information.

Once you've got this, probably the next sensible step is to have a word with Citizens Advice before you start racking up professional fees, which will nibble away all too readily at your £20K award.

banjaxed_48

Marcon said:

banjaxed_48 said:

Hello, 

This is my first post on this forum and I’ll try to keep this short…

After four years waiting for a tribunal hearing I can now say I was unfairly dismissed. My notice pay and expenses were withheld from me (around £20,000).

A few months before the hearing the respondent (no longer trading) sold all of their remaining assets of the company for over £300K. After selling the assets they then chose to go into voluntary liquidation. Creditors or Members Voluntary Liquidation?

Four days after liquidators were appointed, I was informed by the respondent that there were no assets left in the company and all the money had gone. However they have not given any financial breakdown/explanation of where the £300K went to.

Naturally I added myself as a creditor and have raised my concerns with the liquidator, who courteously said they would investigate and get back to me by the end of April (’23). Chase them and ask when they will provide the promised information.

So far, I haven’t heard anything further and, having worked for the respondent, I am sure he is cooking up some story to justify where all the money has gone.  

In anticipation of being lied to, who does one turn to in such circumstances? My solicitor has said it isn’t his area of expertise, although he hasn’t offered any suggestions who can help. Then ask him to give you the necessary guidance in terms of finding the best person to assist, should you need help.

Even the employment judge gave me a tip that, as a creditor, I have a right to see a breakdown of where all monies went and challenge this. 

Is there someone or a field that deals with this type of investigation/challenge? It’s beyond me, but your thoughts would be very much appreciated. 

Banjaxed (well and truly)

P.S. The respondent sent up a new company at the same time as appointing the liquidators Now there's a surprise (not)

Until you see the breakdown of where the money went, you're a bit stuck, so you do need to chase the liquidators for this information.

Once you've got this, probably the next sensible step is to have a word with Citizens Advice before you start racking up professional fees, which will nibble away all too readily at your £20K award.

Dear Macron, 

Many thanks for taking the time to replay and for sharing your thoughts. 

The voluntary liquidation if Creditors and I am listed as a creditor. I have written to chase for the information I need; am I right in thinking I can expect a full breakdown of the monies and where it has gone e.g. relevant invoices, bank transactions, etc? 

Many thanks again!

Banjaxed

Marcon

banjaxed_48 said:

Marcon said:

banjaxed_48 said:

Hello, 

This is my first post on this forum and I’ll try to keep this short…

After four years waiting for a tribunal hearing I can now say I was unfairly dismissed. My notice pay and expenses were withheld from me (around £20,000).

A few months before the hearing the respondent (no longer trading) sold all of their remaining assets of the company for over £300K. After selling the assets they then chose to go into voluntary liquidation. Creditors or Members Voluntary Liquidation?

Four days after liquidators were appointed, I was informed by the respondent that there were no assets left in the company and all the money had gone. However they have not given any financial breakdown/explanation of where the £300K went to.

Naturally I added myself as a creditor and have raised my concerns with the liquidator, who courteously said they would investigate and get back to me by the end of April (’23). Chase them and ask when they will provide the promised information.

So far, I haven’t heard anything further and, having worked for the respondent, I am sure he is cooking up some story to justify where all the money has gone.  

In anticipation of being lied to, who does one turn to in such circumstances? My solicitor has said it isn’t his area of expertise, although he hasn’t offered any suggestions who can help. Then ask him to give you the necessary guidance in terms of finding the best person to assist, should you need help.

Even the employment judge gave me a tip that, as a creditor, I have a right to see a breakdown of where all monies went and challenge this. 

Is there someone or a field that deals with this type of investigation/challenge? It’s beyond me, but your thoughts would be very much appreciated. 

Banjaxed (well and truly)

P.S. The respondent sent up a new company at the same time as appointing the liquidators Now there's a surprise (not)

Until you see the breakdown of where the money went, you're a bit stuck, so you do need to chase the liquidators for this information.

Once you've got this, probably the next sensible step is to have a word with Citizens Advice before you start racking up professional fees, which will nibble away all too readily at your £20K award.

Dear Macron, 

Many thanks for taking the time to replay and for sharing your thoughts. 

The voluntary liquidation if Creditors and I am listed as a creditor. I have written to chase for the information I need; am I right in thinking I can expect a full breakdown of the monies and where it has gone e.g. relevant invoices, bank transactions, etc? 

Many thanks again!

Banjaxed

No. That level of detail would be excessive, both in terms of the cost of providing it, and potentially in terms of divulging information to third parties (i.e. the creditors) which may be commercially sensitive, breach confidentiality or simply fall foul of data protection legislation.

Professional liquidators who are wholly independent of the company are appointed to check the fine detail, and as a creditor you will see a summary of what's been going on. It will be for the liquidators to check that there was nothing untoward/unlawful in terms of who the failed company chose to pay and when.

Smithcom

banjaxed_48 said:

Hello, 

This is my first post on this forum and I’ll try to keep this short…

After four years waiting for a tribunal hearing I can now say I was unfairly dismissed. My notice pay and expenses were withheld from me (around £20,000).

A few months before the hearing the respondent (no longer trading) sold all of their remaining assets of the company for over £300K. After selling the assets they then chose to go into voluntary liquidation. 

Four days after liquidators were appointed, I was informed by the respondent that there were no assets left in the company and all the money had gone. However they have not given any financial breakdown/explanation of where the £300K went to.

Naturally I added myself as a creditor and have raised my concerns with the liquidator, who courteously said they would investigate and get back to me by the end of April (’23). 

So far, I haven’t heard anything further and, having worked for the respondent, I am sure he is cooking up some story to justify where all the money has gone.  

In anticipation of being lied to, who does one turn to in such circumstances? My solicitor has said it isn’t his area of expertise, although he hasn’t offered any suggestions who can help. Even the employment judge gave me a tip that, as a creditor, I have a right to see a breakdown of where all monies went and challenge this. 

Is there someone or a field that deals with this type of investigation/challenge? It’s beyond me, but your thoughts would be very much appreciated. 

Banjaxed (well and truly)

P.S. The respondent sent up a new company at the same time as appointing the liquidators 

Your chance of recovering any money will depend on whether the company was solvent when it went into liquidation.

If the company is insolvent, action could potentially be taken against the company directors in their personal capacity.

I'm no expert in this, but I would imagine that the burden of proof against company directors for negligent acts would be pretty high, and likely to be very expensive, with no guarantee of success.

As a creditor, you will normally be provided with periodic reports from the liquidator, which will break down the costs related to the liquidation.   You will be amazed at some of the liquidation costs.

Your prospects of success will depend on the facts of the matter, but if I was a betting person, I suspect that I know the likely outcome of this.

SC