rb5 286

iTrader: (2)

so the limited company I work for has decided to liquidate (to write off a load of debt!!!) and told us that they're gonna start up again as a new company which we will be moved over to.

many of us have over 14 years employment there,

there's no guarantee that this new company will go **** up in a few months with its limited cash fund and even saying that there may not even be enough to pay wages!!!


we are all happy to go to the new company but it seems there is a massive grey area with regards to the transfer of our employment (i.e. years of service) so that we can claim the redundancy we should be entitled to should the new one go under!!!

they say that they will write out new contracts stating this transfer but I dont see how the state redundancy will take this agreement if we needed to claim, the state would just see it as we started employment at a new company with no years entitlement!!!

and , by taking this new employment we wouldnt be able to claim redundancy from the state - so it looks like either way we, as employees will loose our redundancy !!!

if we take the redundancy (having to claim from the state as the company cant pay us) we then cant work, the new comapny wont be able to function without the staff so it will no doubt fold!!



can anyone clear these points up at all, please

PaulC72

Take the money and find somewhere else a company that liquidates and then starts up again doesn't deserve to be able to restart like that. Its a terrible practice.

what would scooby do

Typical actions of useless business owners. Phoenix companies should be made illegal. What do you think is going to happen at the businesses that are owed all this money?

I wouldn't worry about your rights, the owners are probably prepared to shaft everyone and anyone..

judgejules

This happened to a company I used to work for.

Speak to ACAS in the morning, if anyone else chips in ignore anything they say and speak to ACAS... this is and can be a minefield.

http://www.acas.org.uk/index.aspx?articleid=1655

Mrfastbaz

mate of mine had similar issues a few years ago and in the end acas helped him and citizen advice bureau but they can take weeks and weeks to get an appointment

scud8

iTrader: (1)

The state will never pay redundancy. If the company you work for is insolvent and makes you redundant you join all the other debtors and may get some money if the liquidator gets anything for the assets. See http://www.direct.gov.uk/en/Employme...ay/DG_10026695.

Redundancy is purely a contractual matter between you and the company you work for (subject to the statutory minimums laid down by law). If the new company is taking you on then they can write into your contract a redundancy stipulation that reflects your service to date, but if the new company ends in insolvency the state won't step in and pay your redundancy.

scud8

iTrader: (1)

Sorry - talking some b******ks above. If there aren't enough funds to pay redundancy from the administrator then there are provisions for the government to pay the statutory minimum (see http://www.direct.gov.uk/en/Employme.../Pay/DG_178525).

The other thing it may be worth you looking at is the TUPE regulations. These govern what happens if employees are transfered to a new company as part of an insolvency. See http://www.direct.gov.uk/en/Employme...vers/DG_176404.

As judgejules says, talk to ACAS.

Milamber

iTrader: (2)

I already have Mark

DCI Gene Hunt

+1 for "Transfer of undertakings" etc.... TUPE