Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Jbo
    • By Jbo 8th Jun 18, 8:40 PM
    • 2Posts
    • 0Thanks
    Jbo
    Something not right!!
    • #1
    • 8th Jun 18, 8:40 PM
    Something not right!! 8th Jun 18 at 8:40 PM
    On Tuesday afternoon around 16:00 the director of our company (circa 50 employees) told the staff in the office that as of end of today the company would no longer be trading. As it wasn’t fair for the employees to have to explain this to our customers/contractors we were told to basically go home now.

    They said a meeting was scheduled for Wednesday morning where a HR advisor would explain what would happen to us.

    The meeting was moved to Thursday where we were basically told we were now redundant except for a handful of staff who may get TUPE d across to another company if they took over a section of the business. Another small group were told to stay on to help ‘wind’ the business.

    At the time of writing (now Friday pm) the company is in neither administration or liquidation so is still trading although there are no employees doing any work.

    The company is asking its customers to pay up any existing debts so they can have access to their stock.

    Surely all this is wrong and not legal.

    Any advice
Page 1
    • Alter ego
    • By Alter ego 8th Jun 18, 8:47 PM
    • 2,420 Posts
    • 2,392 Thanks
    Alter ego
    • #2
    • 8th Jun 18, 8:47 PM
    • #2
    • 8th Jun 18, 8:47 PM
    These circumstances are always difficult/confused. Best would be start looking for a new job.
    Ignore me if you like, it's not the real me anyway.
    • Jbo
    • By Jbo 8th Jun 18, 9:09 PM
    • 2 Posts
    • 0 Thanks
    Jbo
    • #3
    • 8th Jun 18, 9:09 PM
    • #3
    • 8th Jun 18, 9:09 PM
    If the staff have been told don!!!8217;t come to work you!!!8217;re no longer needed but company not in liquidation or administration is that unfair dismissal?
    • lulu650
    • By lulu650 8th Jun 18, 9:43 PM
    • 902 Posts
    • 973 Thanks
    lulu650
    • #4
    • 8th Jun 18, 9:43 PM
    • #4
    • 8th Jun 18, 9:43 PM
    The company aren't in liquidation yet with some employees being retained to wind things up and others being TUPE'd across. This should mean that there is enough money in the bank to pay all monies owed to those being made redundant and those continuing to work. If there isn't enough money then the Government National Insurance Fund step in, but an insolvency practioner will need to be appointed.

    You should receive a letter in writing from your employer soon. As there doesn't appear to have been a consultation with employees beforehand, this can be chased through to an Employment Tribunal.
    https://www.gov.uk/staff-redundant/redundancy-consultations

    Your first priority is looking for another job and signing on.
    Saving money right, left and centre
    • Xbigman
    • By Xbigman 10th Jun 18, 5:04 PM
    • 3,123 Posts
    • 1,358 Thanks
    Xbigman
    • #5
    • 10th Jun 18, 5:04 PM
    • #5
    • 10th Jun 18, 5:04 PM
    This is perfectly legal and above board. Owners do not have to keep a company trading until insolvent. If a company is unprofitable but can cover its debts a business decision to close the company can be made. In that case a controlled shut down by the owners, rather than administrators can be preferable. It protects the owners reputations and avoids the fairly large fees administrators can charge. As long as the owners pay redundancy pay and pay in lieu of notice (PILON) and wind the business up, thats it.
    The fact they didn't consult is a moot point if the business no longer exists by the time you take it to a tribunal.


    Darren
    Xbigman's guide to a happy life.

    Eat properly
    Sleep properly
    Save some money
    • lulu650
    • By lulu650 10th Jun 18, 7:54 PM
    • 902 Posts
    • 973 Thanks
    lulu650
    • #6
    • 10th Jun 18, 7:54 PM
    • #6
    • 10th Jun 18, 7:54 PM
    .....The fact they didn't consult is a moot point if the business no longer exists by the time you take it to a tribunal....Darren
    Originally posted by Xbigman
    But shouldn't stop the OP and colleagues pursuing this as the Government National Insurance Fund could pay.
    Saving money right, left and centre
    • superbigal36
    • By superbigal36 12th Jun 18, 4:43 PM
    • 665 Posts
    • 361 Thanks
    superbigal36
    • #7
    • 12th Jun 18, 4:43 PM
    • #7
    • 12th Jun 18, 4:43 PM
    Obviously how many were affected determines if any consultancy period was required.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,730Posts Today

7,063Users online

Martin's Twitter
  • Ta ta... for now. This August, as I try and do every few yrs, I'm lucky enough to be taking a sabbatical. No work,? https://t.co/Xx4R3eLhFG

  • RT @lethalbrignull: @MartinSLewis I've been sitting here for a good while trying to decide my answer to this, feeling grateful for living i?

  • Early days but currently it's exactly 50 50 in liberality v democracy, with younger people more liberal, older more? https://t.co/YwJr4izuIj

  • Follow Martin