ChatterBank12 mins ago
redundancy lou of notice money.
I was made redundant 14months ago. the company closed the same day as we were made redundant.
The liquidators said they would handle all the redundance money. 2months later we got our redundancy money but never got our 3months lou of notice money. it then turned out if you dont claim from the government within 3 months you can not claim it. by the time we found this out everybody at the company missed out of this money. is their anyhthing we can do about this?
The liquidators said they would handle all the redundance money. 2months later we got our redundancy money but never got our 3months lou of notice money. it then turned out if you dont claim from the government within 3 months you can not claim it. by the time we found this out everybody at the company missed out of this money. is their anyhthing we can do about this?
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Fair enough! There are a few students on here who trawl for answers though, and they do themselves no favours or those they seek to advise in future. Some of the advice on here is crap so I can't see how lazy students benefit from getting a crap answer. I'll get back to you asap. Might be tomorrow night though.
What I can say, is that when a company goes bust there are rules that decide who the 'preferential creditors' are. The liquidator/trustee in bankruptcy gets their fees first. Then, (I think), it's the Inland Revenue, then unpaid employees. However, I need to check this!! If I'm right you shouldn't have needed to claim from the government - the liquidator should have identified what was owed, who was owed, and who should be paid first. I'll check this though.
What I can say, is that when a company goes bust there are rules that decide who the 'preferential creditors' are. The liquidator/trustee in bankruptcy gets their fees first. Then, (I think), it's the Inland Revenue, then unpaid employees. However, I need to check this!! If I'm right you shouldn't have needed to claim from the government - the liquidator should have identified what was owed, who was owed, and who should be paid first. I'll check this though.
Thanks that would be great!
There was 26 of us that worked for the company and none of us got the lou of notice. we never got anything to fill in for it. we all got told the liquidators would sort it all out!
cheers for your time.
by the way that plumber said he would come back in a couple of weeks.So i'll just tell him that i cant pay him.
i'll log on tomorrow to see if you've had time to look it up!
THANKS AGAIN!
There was 26 of us that worked for the company and none of us got the lou of notice. we never got anything to fill in for it. we all got told the liquidators would sort it all out!
cheers for your time.
by the way that plumber said he would come back in a couple of weeks.So i'll just tell him that i cant pay him.
i'll log on tomorrow to see if you've had time to look it up!
THANKS AGAIN!
No probs. If for whatever reason I can't get on tomorrow night ( I have wall-to-wall essays to write, plus two job interviews [with presentations] coming up), don't worry - I'll do my best to help. I will help, and I'll do so as soon as I possibly can. I have a sneaky feeling you won't get what you want though - and it's because I also get the feeling other parties are above you (etc) in the list of creditors owed. If someone (perhaps the Inland Revenue) is ranked above the employees (as I think they are), and their right to payment exhausts the available assets, then despite what the company promised, the IR have a greater right to what's available than you and your colleagues do.
But, as stated, I need to check this. But I'll get back to you soon!
But, as stated, I need to check this. But I'll get back to you soon!
Hi Rocknut,
Apologies for the delay! As you know, I am very busy at the moment and this week I've only managed to find time to answer legal problems that I'm more familiar with, and I have little experience in your legal area - a combination of Employment law, and Commercial/([Insolvency & diligence]). Still, I'm supposed to know where to find the answer in any case.
PART I
From what I can gather the news isn't good. I don't think that you are entitled to anything more than the minimum statutory redundancy entitlement - essentially a compensation payment for past service that partly depends on what age the dismissed employee is/was.
Your issue is that you believe you are entitled to an additional payment above that of the statutory minimum redundancy payment that you received via the liquidator. But who is it that owes you this payment?
My guess is that your employer said they would give you three months wages in lieu of notice when they announced they were making you (and presumably, everyone else) redundant? If so, then as a creditor owed by the insolvent company, you join a queue of creditors - and the strong liklihood is that there are no assets left that could repay you what your employers said they would pay you. If that's the case you may have a claim against the liquidators, because they have an obligation to repay creditors in preference of where they are ranked. They should not have paid other creditors ranked beneath unpaid employees until they had paid the unpaid employees all that they were owed - or as much as they could pay you all before all the assets were exhausted. So, you need to tell me why you think you are entitled to this additional three month period, and a good bit more about the circumstances of where you think your entitlement came about.
Apologies for the delay! As you know, I am very busy at the moment and this week I've only managed to find time to answer legal problems that I'm more familiar with, and I have little experience in your legal area - a combination of Employment law, and Commercial/([Insolvency & diligence]). Still, I'm supposed to know where to find the answer in any case.
PART I
From what I can gather the news isn't good. I don't think that you are entitled to anything more than the minimum statutory redundancy entitlement - essentially a compensation payment for past service that partly depends on what age the dismissed employee is/was.
Your issue is that you believe you are entitled to an additional payment above that of the statutory minimum redundancy payment that you received via the liquidator. But who is it that owes you this payment?
My guess is that your employer said they would give you three months wages in lieu of notice when they announced they were making you (and presumably, everyone else) redundant? If so, then as a creditor owed by the insolvent company, you join a queue of creditors - and the strong liklihood is that there are no assets left that could repay you what your employers said they would pay you. If that's the case you may have a claim against the liquidators, because they have an obligation to repay creditors in preference of where they are ranked. They should not have paid other creditors ranked beneath unpaid employees until they had paid the unpaid employees all that they were owed - or as much as they could pay you all before all the assets were exhausted. So, you need to tell me why you think you are entitled to this additional three month period, and a good bit more about the circumstances of where you think your entitlement came about.
Part II
The 'three month' claim period from the Govt you mention, seems to be a reference to the 'time limits' under the Employment Rights Act 1996. This actually seems to be a six month period with a six month extention depending upon the circumstances -again it doesn't help you though since your redundancy happened 14 months ago.
http://www.dti.gov.uk/employment/employment-le gislation/employment-guidance/page15686.html#W hen_is_a_redundancy_payment_due
You are not entitled to anything more than the statutory minimum - unless your employer had promised to make such payments. But, this promise would have had to have been made BEFORE the company went bust, not after. It's a bit like 'musical chairs'. When the music stops every creditors right to the assets of the company freezes at that point. A promise made by the debtor to pay you more than another creditor ranked above you, or with an earlier entitlement than you will have no effect.
Your only remedy as far as I can see is that you may have a claim for compensation due to a failure to warn or consult about the impending redundancy. But again, this would appear to be a claim against a company that's already bust!! So I'm sorry; but I think you have no remedy.
Stu
p.s. The erm, car "incident", was a very silly act. It had nothing to do with wanting to practice law though. It was due to learning about deaths in the mining and shipbuilding industries, and the legislation passed in response to industrial disasters such as 'Aberfan', and asbestosis deaths. I learned that laws were passed in response to those human disasters and that law could prevent similar disasters occuring again.
The 'three month' claim period from the Govt you mention, seems to be a reference to the 'time limits' under the Employment Rights Act 1996. This actually seems to be a six month period with a six month extention depending upon the circumstances -again it doesn't help you though since your redundancy happened 14 months ago.
http://www.dti.gov.uk/employment/employment-le gislation/employment-guidance/page15686.html#W hen_is_a_redundancy_payment_due
You are not entitled to anything more than the statutory minimum - unless your employer had promised to make such payments. But, this promise would have had to have been made BEFORE the company went bust, not after. It's a bit like 'musical chairs'. When the music stops every creditors right to the assets of the company freezes at that point. A promise made by the debtor to pay you more than another creditor ranked above you, or with an earlier entitlement than you will have no effect.
Your only remedy as far as I can see is that you may have a claim for compensation due to a failure to warn or consult about the impending redundancy. But again, this would appear to be a claim against a company that's already bust!! So I'm sorry; but I think you have no remedy.
Stu
p.s. The erm, car "incident", was a very silly act. It had nothing to do with wanting to practice law though. It was due to learning about deaths in the mining and shipbuilding industries, and the legislation passed in response to industrial disasters such as 'Aberfan', and asbestosis deaths. I learned that laws were passed in response to those human disasters and that law could prevent similar disasters occuring again.
Hi Stu Dent,
sorry i've been away a couple of days!
It was after the company closed that the mention of the 3 months pay came up with the liquidators. we had a meeting with them the day after the company shut!.
It looks like a lost cause, i wrote that cash off a long time ago. Like they say what u dont have you dont miss! i'll just draw a line under it and learn from it!
To be honest it was the plumber that was bothering me more than anything!
THANKS VERY MUCH FOR ALL YOUR TIME IN LOOKING INTO EVERYTHING FOR ME!
Hope all goes well with your exams.
I'll let you know how i get on with the plumber.
Cheers again
ROCKNUT
sorry i've been away a couple of days!
It was after the company closed that the mention of the 3 months pay came up with the liquidators. we had a meeting with them the day after the company shut!.
It looks like a lost cause, i wrote that cash off a long time ago. Like they say what u dont have you dont miss! i'll just draw a line under it and learn from it!
To be honest it was the plumber that was bothering me more than anything!
THANKS VERY MUCH FOR ALL YOUR TIME IN LOOKING INTO EVERYTHING FOR ME!
Hope all goes well with your exams.
I'll let you know how i get on with the plumber.
Cheers again
ROCKNUT
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