been made redundant effective immediately - Unpaid salary

Backtoback365

Hi all,

so me and my colleagues have been made redundant effective immediately. The reason is the company cannot pay its debts. They are not officially insolvent (active on companies house) but there is an insolvency practitioner on the case. We have not been paid for our previous months work and are told to wait for our CN number to apply for what is owed. My contract says 3 months notice. Is the contract notice period applied or is it statutory notice period? 

We have not heard anything from the company or practitioner despite trying to contact. Currently in a bad spot as they have also reported earnings to hmrc despite not paying our salaries so we cannot apply for benefits.

I would appreciate any advice on how to move forward

Thanks

Grumpy_chap

Backtoback365 said:

Hi all,

so me and my colleagues have been made redundant effective immediately. The reason is the company cannot pay its debts. They are not officially insolvent (active on companies house) but there is an insolvency practitioner on the case. We have not been paid for our previous months work and are told to wait for our CN number to apply for what is owed. My contract says 3 months notice. Is the contract notice period applied or is it statutory notice period? 

We have not heard anything from the company or practitioner despite trying to contact. Currently in a bad spot as they have also reported earnings to hmrc despite not paying our salaries so we cannot apply for benefits.

I would appreciate any advice on how to move forward

Thanks

Sorry to hear about your situation.

I can't advise on the rules for the pay and how that should work when there is an insolvent (for practical purposes) employer.  

I would most certainly register for Job Seekers Allowance straight away.  That is the route in to benefits where applicable and may (subject to detail) be backdated if the incorrect reporting is resolved.  You may, in any case, be eligible for nJSA which is not means tested but based upon NI contribution record.  Payment can only start when you make the claim.

Hoenir

Has the administrator been officially appointed yet? 

Backtoback365

Hoenir said:

Has the administrator been officially appointed yet? 

.Yes they have finally been appointed. The company wants a creditor's involuntary liquidation. They have rejected a creditors meeting and we have to vote to have one and I've been asked to fill in a proof of debt form. If the company has no assets and we are listed as preferential, who will pay the monies owed. Is this the company or the RPS. Thanks for the response!

Backtoback365

Grumpy_chap said:

Backtoback365 said:

Hi all,

so me and my colleagues have been made redundant effective immediately. The reason is the company cannot pay its debts. They are not officially insolvent (active on companies house) but there is an insolvency practitioner on the case. We have not been paid for our previous months work and are told to wait for our CN number to apply for what is owed. My contract says 3 months notice. Is the contract notice period applied or is it statutory notice period? 

We have not heard anything from the company or practitioner despite trying to contact. Currently in a bad spot as they have also reported earnings to hmrc despite not paying our salaries so we cannot apply for benefits.

I would appreciate any advice on how to move forward

Thanks

Sorry to hear about your situation.

I can't advise on the rules for the pay and how that should work when there is an insolvent (for practical purposes) employer.  

I would most certainly register for Job Seekers Allowance straight away.  That is the route in to benefits where applicable and may (subject to detail) be backdated if the incorrect reporting is resolved.  You may, in any case, be eligible for nJSA which is not means tested but based upon NI contribution record.  Payment can only start when you make the claim.

It's an awkward position to be in, Thanks for your feedback!

jamest88

This happened to me once. The company I was working for was sued and went bust. We were told to leave immediately. I ended up getting paid by the liquidators a few weeks later but I suppose it depends if the company has assets to sell to cover the costs.

Backtoback365

jamest88 said:

This happened to me once. The company I was working for was sued and went bust. We were told to leave immediately. I ended up getting paid by the liquidators a few weeks later but I suppose it depends if the company has assets to sell to cover the costs.

I just got a portion of my unpaid salary back better late than never!