contract query -business liquidated and restarted next day

Choccygirl123

My young person works in hospitality and they've recently found that the business was liquidated and now trading under another name, Ownership etc all the same just a different trading name after huge debt wiped.

They have a 30hr contract which states they must give a month's notice. The business haven't notified them of the change and they've not been told formally or informally. They only found out when a customer told them.

If they want to leave,  does the months notice still stand even though contract  in old trading name and no notification from owners? 

Many thanks 

Hoenir

There's nothing to stop anybody from simply walking out the door. The downside comes in the form of personal reputation and the burning of bridges should a reference be required. Much goes on in business that employee's have no knowledge of. Rather than rely on whispered stories. Better to ask direct questions of the mangement.

Choccygirl123

Thank you I appreciate your comment.  They're not worried about referees, as have two solid ones. Reputation is important to them, but the management hasn't great. At this stage it's personal damage limitation - Constant underpayments, missing holiday pay and no explanation how tips are worked out - it's all very slap dash. The info has been published on companies house so it's not Chinese whispers. 

Grumpy_chap

Choccygirl123 said:

My young person works in hospitality and they've recently found that the business was liquidated and now trading under another name, Ownership etc all the same just a different trading name after huge debt wiped.

They have a 30hr contract which states they must give a month's notice. The business haven't notified them of the change and they've not been told formally or informally. They only found out when a customer told them.

If they want to leave,  does the months notice still stand even though contract  in old trading name and no notification from owners? 

Many thanks 

If I understand correctly, individual was an employee of A Ltd.
A Ltd ceased trading and has been struck off.
A new company B Ltd has taken over the operations (but not debts) of A Ltd.

If that is correct, what should have happened is the staff are either dismissed by A Ltd (redundancy might not be paid if A Ltd was insolvent) or are migrated to the new company under TUPE.
Given that the individual has not been dismissed, then the individual must have been migrated to B Ltd under TUPE.

I doubt what has happened is following proper process.

What I would do is to ask the Manager in a very open way, something like "I am a bit confused, a customer asked for us as B Ltd, but I thought we were A Ltd" as a non-accusative opener.  Just to solicit the confirmation that everything is fine and individual will continue to get paid. 

That's about as much as can be hoped for given it sounds like the Owner / Manager doe snot really operate the business with all the proper processes in place and issues around mistakes with pay should not happen.  I doubt these mistakes will be properly corrected.
Then, carry on working, while looking for alternative employment and then serve the month's notice once a new role is secured.  It is usually easier to secure employment from within employment.  Even if the business has not operated correctly, it is best to still serve the proper notice period and avoid any repercussions.  Two wrongs don't make a right.

Brie

If I wasn't being paid correctly nor getting holidays I'm legally entitled to then I'd be walking out the door sooner rather than later.  That will likely mean that final shifts/week may not be paid at all in which case it might be a case of reporting the business to employment standards or whomever.

The thing to keep in mind is that there will be future job interviews and questions about "why did you leave?"  It's good to have a somewhat neutral but true answer.  Employers don't want to hire trouble makers or people with attitude but should respect someone who can comment on the fact that the business was unstable and thus their ongoing employment was as well and they thought it best to cut their losses and find a place where they could learn good business practices.  (or something like that)

Hoenir

Choccygirl123 said:

At this stage it's personal damage limitation - Constant underpayments, missing holiday pay and no explanation how tips are worked out - it's all very slap dash. 

If's not possible to directly approach the employer with concerns and get them resolved.  Then personally I'd have no hesitation in moving on once new employment is secured. There's good, bad and indifferent employers in every profession. There's little recourse for the employer if the exit is timed well. Working relationship's need to be 2 way. 

DullGreyGuy

Choccygirl123 said:

Thank you I appreciate your comment.  They're not worried about referees, as have two solid ones. Reputation is important to them, but the management hasn't great. At this stage it's personal damage limitation - Constant underpayments, missing holiday pay and no explanation how tips are worked out - it's all very slap dash. The info has been published on companies house so it's not Chinese whispers. 

Increasingly companies are insisting on having a reference from your last employer so unless he's willing to commit fraud by denying the employment ever happened it'd be best not to leave on bad terms even if they have good references elsewhere. Who knows they may end up working in Financial Services where companies are obliged to take 6 years of references and get bank statements etc to cover any gap of 30 days or more to ensure you arent hiding an employer. 

If it's been liquidated then the official administrator will have contact him to advise about the insolvency, did they not get this? 

Are you sure it's his actual employer thats gone insolvent and not just another company within the group? Were it another company then that could explain the lack of comms etc because the new company just buys the subsidiaries of the old company and you continue working for the subsidiary so no issues with insolvency and no TUPE as your employer hasn't changed.