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Employer with holding wages

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CushtyFred | 13:27 Mon 29th Oct 2007 | Law
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My employer has closed his business and therefore I have lost my job. He said he has put the company into liquidation. I have checked the company house website and the company is still actively trading. He runs another business under the same name which is still operating. Me and a couple of other employees are owed two weeks wages, which the employer says we are not entitled to. What are our rights? Can we claim this money?
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Yes you can. Even if the company is in liquidation, employees are classed as preferred creditors and therefore you will be entitled to your money before any one else.

Go to your local citizens advice bureau for more help.
Liquidation is a legal process that takes about 3 months so it is possible you can still see the company listed on the Companies House website. You need to find out who the liquidator is and register your claim. You are a preferred creditor. This sounds like a voluntary liquidation by the shareholder(s) (your old boss) which is perfectly legal, but you are entitled to your money. You may find out he is lying and is not actually liquidating the business at all. Depending on the length of service you had (>2yrs?), you may also be entitled to a statutory redundancy payment. The fact he has another business still trading doesn't change any of this (just adds to the feeling he is playing fast and loose with his employees)
http://www.mycreditcontrollers.co.uk/company-check.html

The link above might be useful for you. As a different respondent has commented, it can take many months for Companies House to catch up with the situation. However this tool also searches for published corporate insolvency notices to give you information that is bang up to date.

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Employer with holding wages

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