Something not right!!

Jbo_2 · 8 June 2018 at 8:40PM

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

Alter_ego · 8 June 2018 at 8:47PM

These circumstances are always difficult/confused. Best would be start looking for a new job.

Jbo_2 · 8 June 2018 at 9:09PM

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 · 8 June 2018 at 9:43PM

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.

Xbigman · 10 June 2018 at 5:04PM

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

lulu650 · 10 June 2018 at 7:54PM

Xbigman wrote: »

.....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

But shouldn't stop the OP and colleagues pursuing this as the Government National Insurance Fund could pay.

superbigal36 · 12 June 2018 at 4:43PM

Obviously how many were affected determines if any consultancy period was required.

Something not right!!

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