Sole Trader Boss has died - what do i do?

ESmith04

MattMattMattUK said:

Whatever you do do not run the pay run tomorrow using the bank details you have, to do so would be committing financial fraud and would create a huge issue primarily for you, but also for the estate. Do not yield to pressure from others if they try to push you to do so.

Thank you. This was a niggly doubt in my head following some research I have been doing so thank you for adding this. 

Thanks all, I will see whats said today and go from there. 

ESmith04

Grumpy_chap said:

This does not help the OP in the immediate term, nor will it help the other employees, but I don't think simply having the login details for the accounts give the OP the authority to process transactions, however routine the nature of the transactions.

AIUI, the sole-trader, so the business accounts will be in the name of the individual and should, therefore, be frozen at the death of the individual.

It will all fall to the Executors / Administrators of the Estate to resolve from hereon (presumably the brother).  The OP may wish to support the Executors / Administrators in practical ways.  It is nice to be helpful, but that "work" for the Estate can also be charged to the Estate, assuming there are funds available.  The OP knows about the business accounts but not, presumably, the whole of assets held by the deceased.  

Is the nature of the business such that there are ongoing customer likely to want to continue and any of the employees likely to want to take over the customer base?

Maybe once upon a time there would of been a business to continue by the employees but its an aging staff who are waiting out retirement. There is 2 weeks of work booked in - we are a mechanics garage so it means ordering parts on accounts etc which are all in the deceased name so I am thinking along the lines of the bank account, that we shouldnt be ordering anything in his name as this could be deemed fraud?

it feels like its going to be a messy, unpaid day!! 

Flugelhorn

crumbs what a to-do, very difficult and as you say a messy unpaid day (or two) ahead. Suspect key thing as book keeper admin is to draw a line as to the state of play at this moment - ie no more ordering / paying etc 

very difficult for the family but maybe they do know of the executor - though it is quite a task and they may have to get professional help in 

DullGreyGuy

ESmith04 said:

Grumpy_chap said:

This does not help the OP in the immediate term, nor will it help the other employees, but I don't think simply having the login details for the accounts give the OP the authority to process transactions, however routine the nature of the transactions.

AIUI, the sole-trader, so the business accounts will be in the name of the individual and should, therefore, be frozen at the death of the individual.

It will all fall to the Executors / Administrators of the Estate to resolve from hereon (presumably the brother).  The OP may wish to support the Executors / Administrators in practical ways.  It is nice to be helpful, but that "work" for the Estate can also be charged to the Estate, assuming there are funds available.  The OP knows about the business accounts but not, presumably, the whole of assets held by the deceased.  

Is the nature of the business such that there are ongoing customer likely to want to continue and any of the employees likely to want to take over the customer base?

Maybe once upon a time there would of been a business to continue by the employees but its an aging staff who are waiting out retirement. There is 2 weeks of work booked in - we are a mechanics garage so it means ordering parts on accounts etc which are all in the deceased name so I am thinking along the lines of the bank account, that we shouldnt be ordering anything in his name as this could be deemed fraud?

it feels like its going to be a messy, unpaid day!! 

I would say "fraud" is a strong word to use, I cannot realistically see someone ending up in prison for it. That said, just as the contract of employment is frustrated/terminated by the death of the sole trader so would any delegated authority you had to order on their behalf. Reprocusions are more likely to be financial than criminal if this was ignored and obviously staff would be working pro-bono to do the work anyway given they are no longer employees. 

TBagpuss

DullGreyGuy said:

Contracts of employment end when the sole trader dies as they are frustrated. The employees claim back wages and redundancy if appropriate from the estate unless the will explicitly hands the business to another person who wants to run it and re-employ the people. If the estate is insolvent then they can claim from the government. 

Is the bolded part correct where the employer was a sole trader? I know there are provisions where the employer is a company that goes bankrupt  but I wasn't sure that they applied to partnerships or sole traders as well. 

Obviosuly may not arise f the deceased had a house or other assets so the estate is not bankrupt. 

DullGreyGuy

TBagpuss said:

DullGreyGuy said:

Contracts of employment end when the sole trader dies as they are frustrated. The employees claim back wages and redundancy if appropriate from the estate unless the will explicitly hands the business to another person who wants to run it and re-employ the people. If the estate is insolvent then they can claim from the government. 

Is the bolded part correct where the employer was a sole trader? I know there are provisions where the employer is a company that goes bankrupt  but I wasn't sure that they applied to partnerships or sole traders as well. 

Obviosuly may not arise f the deceased had a house or other assets so the estate is not bankrupt. 

As far as I am aware, ACAS and the government only lists a few things like armed forces, police and domestic service where you are a family member of the employer as exceptions; makes no mention to the legal structure of the employer.