can they demand i pay my wages back?

lucadobe · 23 September 2012 at 6:11PM

Back in January i was written out a cheque for my wages as normal from the building firm i worked for, i should have collected about 10 days previous but i was on holiday and the money was for December's wage. However, i received last week a Solicitor's letter saying they wanted the money back as the company had gone into liquidation the same day as the cheque owed to me was written out,and basically it is my responsibility to return it! And they were seeking to recover the sum of £1500 on behalf of their client. I still carried on working with this company only difference was at about that time they changed their name, and have been paid as normal, i have written to the Solicitor saying i don't hold myself accountable for this and i also obtained a copy of the cheque from the bank just to check the date on it and you can see it was originally dated the 17th January but the 1 was changed to a 2 to make it 27th January, i have approached the company about it and they said i am not responsible and to ignore it, however, i have since received 2 more letters asking for financial details so as i can ' offer' to make payments!

themull1 · 23 September 2012 at 7:10PM

I wouldnt give them anything back, and i don't think that they've got a leg to stand on.

Wywth · 24 September 2012 at 10:16AM

lucadobe wrote: »

Back in January i was written out a cheque for my wages as normal from the building firm i worked for, i should have collected about 10 days previous but i was on holiday and the money was for December's wage. However, i received last week a Solicitor's letter saying they wanted the money back as the company had gone into liquidation the same day as the cheque owed to me was written out,and basically it is my responsibility to return it! And they were seeking to recover the sum of £1500 on behalf of their client. I still carried on working with this company only difference was at about that time they changed their name, and have been paid as normal, i have written to the Solicitor saying i don't hold myself accountable for this and i also obtained a copy of the cheque from the bank just to check the date on it and you can see it was originally dated the 17th January but the 1 was changed to a 2 to make it 27th January, i have approached the company about it and they said i am not responsible and to ignore it, however, i have since received 2 more letters asking for financial details so as i can ' offer' to make payments!

Thanks for posting your question. Perhaps you could clarify a few things for me.

You say the company went into liquidation, but you still work for them although they are now trading under a different name?
I'm not sure this is correct.
Are you sure the company did go into liquidation (as opposed to administration), and if so, could it be that you are now working for a different company?

If the company was liquidated, how did you manage to contact them and get the response you were not responsible?

Were you paid in arrears as is common, or was some of the money for work you had not yet carried out?

More useful information can be found on the Citizens Advice self-help website www.adviceguide.org.uk or by calling the Citizens Advice Consumer Helpline (0845 4040506) or contacting your local CAB office.

lucadobe · 24 September 2012 at 7:35PM

The letter from the solicitors says:Our client the official receiver then the name of the company ( in liquidation).The people i worked for just changed their name and up until recently i was unaware they had gone into liquidation and other workers carried on working for them the same, only difference was different company name on cheques.Yes the money was for work paid in arrears from December.It seems to make no difference to the solicitors working on behalf of their client The official receiver that this money was due to me on the 17th January.

withabix · 24 September 2012 at 8:01PM

Tell them you will see them in Court if they want the money.

Miss_Havisham · 24 September 2012 at 9:12PM

the cheque cleared, so the account was obviously still operating and they hadn't "stopped" the cheque. On this basis I would assume that the company was still trading when you received the money on your account. Have they given you details of the legal basis on which they are asking for the refund ?

lucadobe · 25 September 2012 at 7:17PM

They say that on or around the date the cheque was made out the winding up of the company had begun and the amount for the cheque was paid out in my account on 31st January, the money paid was disposition of the company's property after the presentation of the winding up petition and is such is void and should be repaid.Also that their client is not aware that any court order was obtained authorising payment to me.:(

antrobus · 25 September 2012 at 8:22PM

withabix wrote: »

Tell them you will see them in Court if they want the money.

The solicitors are acting for the Official Receiver. They'll be quite happy to take the OP to court if necessary.

lucadobe wrote: »

... I still carried on working with this company only difference was at about that time they changed their name...

Of course they changed the company name. The old company went bust, so they simply started up another one, and continued as before.

lucadobe wrote: »

... i have approached the company about it and they said i am not responsible and to ignore it, ...

I'm not sure I'd take much notice of what they have to say on the subject.

lucadobe wrote: »

They say that on or around the date the cheque was made out the winding up of the company had begun and the amount for the cheque was paid out in my account on 31st January, the money paid was disposition of the company's property after the presentation of the winding up petition and is such is void and should be repaid. Also that their client is not aware that any court order was obtained authorising payment to me.:(

That would appear to be the legal position.

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part4B/part5/part_5.htm

CAB_Malvern_Hills_representative · 27 September 2012 at 3:47PM

lucadobe wrote: »

Back in January i was written out a cheque for my wages as normal from the building firm i worked for, i should have collected about 10 days previous but i was on holiday and the money was for December's wage. However, i received last week a Solicitor's letter saying they wanted the money back as the company had gone into liquidation the same day as the cheque owed to me was written out,and basically it is my responsibility to return it! And they were seeking to recover the sum of £1500 on behalf of their client. I still carried on working with this company only difference was at about that time they changed their name, and have been paid as normal, i have written to the Solicitor saying i don't hold myself accountable for this and i also obtained a copy of the cheque from the bank just to check the date on it and you can see it was originally dated the 17th January but the 1 was changed to a 2 to make it 27th January, i have approached the company about it and they said i am not responsible and to ignore it, however, i have since received 2 more letters asking for financial details so as i can ' offer' to make payments!

Hi

It would seem that company A became insolvent and you have been transfered to company B. This should therefore have been a transfer under the TUPE regulations.(Transfer of Undertakings (Protection of Employment) Regulations)

We would sugggest that you write again (keeping a copy) to the solicitor representing the former company asking them on what basis they are asking for the repayment of wages which were due to you before the transfer. It would be up to them to prove that there is a case for seeking repayment and support this with revelvant facts or reference to regulations concerning insolvency and TUPE.

We would suggest that you contact your nearest CAB for further assistance. You can find the bureau from www.citizensadvice.org.uk 'Find you local bureau'

Rhenser · 27 September 2012 at 4:02PM

CAB_Malvern_Hills_representative wrote: »

We would sugggest that you write again (keeping a copy) to the solicitor representing the former company asking them on what basis they are asking for the repayment of wages which were due to you before the transfer. It would be up to them to prove that there is a case for seeking repayment and support this with revelvant facts or reference to regulations concerning insolvency and TUPE.'

It would appear based on post#7 that the OP has already been provided with this reason, although admittedly it may not have been in writing and the OP should carefully check the exact dates to ensure the explanation is valid.

If it proves to be valid, it may be that the OP would be owed the money by company B under TUPE (this would need to be checked) but I can understand why the solicitor working on behalf of the liquidators of company A are asking for the money back based on the reference given in the post by antrobus above.

Or have I totally misunderstood the issue and/or suggested solution.

lucadobe · 27 September 2012 at 4:04PM

Correct me if i am wrong but i think you may have misunderstood.
It is not the company i worked for that are asking for the money back but the Solicitor working for The official receiver. Re: Please read my other replies to this

can they demand i pay my wages back?

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