Comments on: What happens if my employer goes bust? Part 2 http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/ Employment Law Explained Fri, 04 May 2012 12:41:19 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Michael Scutt http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-613 Michael Scutt Sat, 09 Jul 2011 15:34:37 +0000 http://michaelscutt.co.uk/?p=225#comment-613 Beccy I'm sorry to read this. You need legal advice and I don't give legal advice via this blog. Please contact me at Dale Langley & Co if you want me to advise you. Beccy

I’m sorry to read this. You need legal advice and I don’t give legal advice via this blog. Please contact me at Dale Langley & Co if you want me to advise you.

]]> By: Beccy Waddington http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-610 Beccy Waddington Tue, 05 Jul 2011 18:30:31 +0000 http://michaelscutt.co.uk/?p=225#comment-610 I was laid off from a company who claimed they were insolvent. They are still listed as a company but not trading. I have a tribunal date set but am told by then the company will be placed into liquidation. The owner is delaying everything whilst she sets up the same company in a slightly different name. So we have to wait for this to happen before claiming redundancy pay from the taxpayer. That is assuming it won't ever reach tribunal stage. There must be something we can do to stop her loopholing. I was laid off from a company who claimed they were insolvent. They are still listed as a company but not trading. I have a tribunal date set but am told by then the company will be placed into liquidation. The owner is delaying everything whilst she sets up the same company in a slightly different name. So we have to wait for this to happen before claiming redundancy pay from the taxpayer. That is assuming it won’t ever reach tribunal stage. There must be something we can do to stop her loopholing.

]]> By: Michael Scutt http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-591 Michael Scutt Fri, 03 Jun 2011 13:51:57 +0000 http://michaelscutt.co.uk/?p=225#comment-591 Hi Mo I'm sorry for the delay in replying. I think you need to get specialist advice from an insolvency practitioner or specialist lawyer. Once a liquidator has been appointed it is usually not possible to take court action and you have to deal wioth the liquidator/administrator. It's not an area I know lots about. The Law Society will be able to give you a list of specialist solicitors in this area - www.lawsociety.org.uk Kind regardS Hi Mo

I’m sorry for the delay in replying. I think you need to get specialist advice from an insolvency practitioner or specialist lawyer. Once a liquidator has been appointed it is usually not possible to take court action and you have to deal wioth the liquidator/administrator. It’s not an area I know lots about. The Law Society will be able to give you a list of specialist solicitors in this area – http://www.lawsociety.org.uk

Kind regardS

]]> By: Mo http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-585 Mo Sat, 28 May 2011 13:18:51 +0000 http://michaelscutt.co.uk/?p=225#comment-585 Dear Michael I have currently had a two day hearing at the ET for unfair dismissal and Discrimination against my former employer. Unfortunately at the end of the 2nd day only the evidence were completed and there was no time left for written submissions etc. The ET will be providing both parties to another day of hearing soon. My claim is for £50,000 and looks very strong as they followed no procedure. Recently my representatives have been informed by the respondent that they are looking to liquidate the company as they will be in no position to pay the award. They have since offered us a settlement of £2,000. Im not sure what to do as I think even if I win the case, I could be in a situation where the goes into liquidation. I know the company does not have any assets apart from equipments within the building. Would be able to get a court order and get the bailiffs in? Or is there another way I would be able to recover my award? Dear Michael

I have currently had a two day hearing at the ET for unfair dismissal and Discrimination against my former employer. Unfortunately at the end of the 2nd day only the evidence were completed and there was no time left for written submissions etc. The ET will be providing both parties to another day of hearing soon.

My claim is for £50,000 and looks very strong as they followed no procedure. Recently my representatives have been informed by the respondent that they are looking to liquidate the company as they will be in no position to pay the award. They have since offered us a settlement of £2,000.

Im not sure what to do as I think even if I win the case, I could be in a situation where the goes into liquidation. I know the company does not have any assets apart from equipments within the building. Would be able to get a court order and get the bailiffs in? Or is there another way I would be able to recover my award?

]]> By: Michael Scutt http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-271 Michael Scutt Wed, 19 May 2010 21:18:29 +0000 http://michaelscutt.co.uk/?p=225#comment-271 Dear Corné Thank you for this comment and I must apologise for taking a while to get back to you. Applications to the Companies Court for permission to sue the company in administration are fairly rare. The companies court is a division of the High Court so one immediate risk is that if you were unsuccessful or you withdrew the application you may be liable to pay the administrators costs. You would need to pay a court fee as well. I'd be happy to advise you via my firm if you wish but would need more information on the situation. Best regards Dear Corné

Thank you for this comment and I must apologise for taking a while to get back to you. Applications to the Companies Court for permission to sue the company in administration are fairly rare. The companies court is a division of the High Court so one immediate risk is that if you were unsuccessful or you withdrew the application you may be liable to pay the administrators costs.

You would need to pay a court fee as well.

I’d be happy to advise you via my firm if you wish but would need more information on the situation.

Best regards

]]> By: Corné http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-265 Corné Mon, 10 May 2010 16:25:26 +0000 http://michaelscutt.co.uk/?p=225#comment-265 Afternoon Michael, I was unfairly dismissed 10 months before the respondent went into administration. At the time the respondent went into administration the ET process was well advanced, and I believe I had a strong schedule of loss defending £40 000 plus, and a tribunal date was set. The administrators then wrote to me "legal proceedings cannot be instituted....without consent of the administrator or permission of the court" I have since written to the administrator, copying the ET, but received no answer from the administrator. However, the ET then issued new orders and a new date, which I took as permission to continue. When I again issued my schedule of loss to the administrator, in line with the new order, the administrator again referred me to his original letter regarding legal proceedings. It was only on an inquiry to the ET that it was clarified that permission is needed from the companies court and not the ET. What is the process to obtain leave to continue from the Companies Court, and is it worth the effort? Regards, Corné Afternoon Michael,

I was unfairly dismissed 10 months before the respondent went into administration. At the time the respondent went into administration the ET process was well advanced, and I believe I had a strong schedule of loss defending £40 000 plus, and a tribunal date was set.

The administrators then wrote to me “legal proceedings cannot be instituted….without consent of the administrator or permission of the court”

I have since written to the administrator, copying the ET, but received no answer from the administrator. However, the ET then issued new orders and a new date, which I took as permission to continue.

When I again issued my schedule of loss to the administrator, in line with the new order, the administrator again referred me to his original letter regarding legal proceedings.

It was only on an inquiry to the ET that it was clarified that permission is needed from the companies court and not the ET.

What is the process to obtain leave to continue from the Companies Court, and is it worth the effort?

Regards,

Corné

]]> By: Michael Scutt http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-243 Michael Scutt Thu, 18 Mar 2010 13:41:13 +0000 http://michaelscutt.co.uk/?p=225#comment-243 Tony Thanks for this. This is a complex situation and you really need to get some specific legal advice on it. I can't give legal advice through this blog - but do contact me via Dale Langley & Co and we could help. Given that you're in Leeds/Chorley you might want to speak to someone closer to home. Good luck Michael Tony

Thanks for this. This is a complex situation and you really need to get some specific legal advice on it. I can’t give legal advice through this blog – but do contact me via Dale Langley & Co and we could help. Given that you’re in Leeds/Chorley you might want to speak to someone closer to home.

Good luck

Michael

]]> By: Tony http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-240 Tony Sat, 13 Mar 2010 22:21:14 +0000 http://michaelscutt.co.uk/?p=225#comment-240 Hi. 18 months ago I and my colleagues were made redundant. We were working for a company based in Leeds and were the Chorley (Lancashire) based satellite software development office. We arrived at work on the Monday to be told we had been made redundant and to clear our desks. Five of us lodged claims for unfair dismissal as there was no consultation and we believed it was automatically unfair. We also named a second respondent under TUPE regulations as we believed our jobs were transferred to another team working for a different company owned by the man who was also the major shareholder in our company; and based in the Leeds office of our previous employer. Our previous employers defence was that the company was experiencing financial difficulties and the action had to be taken so we would have been made redundant in any event. The second respondents defence was that the work they were doing was different to the work we did and we had incompatible skill sets. We were still confident in our case and continued. Evidence was bundled and submitted, tribunal dates were set and then in June last year, the second respondent went into and is still in administration. As a result of this our case has been put on hold until the administration is completed and we have been told that it is likely our case for unfair dismissal is no more because if there was a transfer, the liability for unfair dismissal went along with it and there is no point chasing the second respondent as they will have no money. The only case we have against our previous employer is one for a failure to consult before the transfer. Is this correct? I would have thought we would still be able to chase our previous employer for the dismissal. Even if that's not the case, I don't see why our case has been suspended. We have not actually had our day in court yet to even establish that the transfer took place. Thanks in advance Tony Hi. 18 months ago I and my colleagues were made redundant. We were working for a company based in Leeds and were the Chorley (Lancashire) based satellite software development office. We arrived at work on the Monday to be told we had been made redundant and to clear our desks.
Five of us lodged claims for unfair dismissal as there was no consultation and we believed it was automatically unfair. We also named a second respondent under TUPE regulations as we believed our jobs were transferred to another team working for a different company owned by the man who was also the major shareholder in our company; and based in the Leeds office of our previous employer.
Our previous employers defence was that the company was experiencing financial difficulties and the action had to be taken so we would have been made redundant in any event.
The second respondents defence was that the work they were doing was different to the work we did and we had incompatible skill sets.
We were still confident in our case and continued. Evidence was bundled and submitted, tribunal dates were set and then in June last year, the second respondent went into and is still in administration.
As a result of this our case has been put on hold until the administration is completed and we have been told that it is likely our case for unfair dismissal is no more because if there was a transfer, the liability for unfair dismissal went along with it and there is no point chasing the second respondent as they will have no money. The only case we have against our previous employer is one for a failure to consult before the transfer.

Is this correct?
I would have thought we would still be able to chase our previous employer for the dismissal. Even if that’s not the case, I don’t see why our case has been suspended. We have not actually had our day in court yet to even establish that the transfer took place.

Thanks in advance
Tony

]]> By: Michael Scutt http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-159 Michael Scutt Wed, 11 Nov 2009 09:37:28 +0000 http://michaelscutt.co.uk/?p=225#comment-159 Jason Thanks for this and sorry for the delay in replying. I think much will depend on the nature of the insolvency process. Administration doesn't have the effect of automatically terminating employment contracts so although you resigned before the administrators were appointed the rescued company may still be able to enforce your contractual obligations against you. Whether the restrictive covenants are enforceable is another matter entirely. I would need to see your contract of employment and know more about the administration process before I could advise you properly. Jason

Thanks for this and sorry for the delay in replying. I think much will depend on the nature of the insolvency process. Administration doesn’t have the effect of automatically terminating employment contracts so although you resigned before the administrators were appointed the rescued company may still be able to enforce your contractual obligations against you.

Whether the restrictive covenants are enforceable is another matter entirely. I would need to see your contract of employment and know more about the administration process before I could advise you properly.

]]> By: Jason http://michaelscutt.co.uk/2009/02/19/what-happens-if-my-employer-goes-bust-part-2/comment-page-1/#comment-142 Jason Wed, 04 Nov 2009 01:22:39 +0000 http://michaelscutt.co.uk/?p=225#comment-142 Hello I resigned from my employer 2 months before the company had administrators appointed. The company directors have since formed a new company of which I have never been involved in and they are trading in the same industry (with the bulk of the same staff) as their former company. My question is regarding my employment contract that was with the former company (currently in administration and not trading). Am I still under contractual obligations (eg. approaching clients etc.) since this company no longer trades? Appreciate any advice. Hello

I resigned from my employer 2 months before the company had administrators appointed. The company directors have since formed a new company of which I have never been involved in and they are trading in the same industry (with the bulk of the same staff) as their former company.

My question is regarding my employment contract that was with the former company (currently in administration and not trading). Am I still under contractual obligations (eg. approaching clients etc.) since this company no longer trades?

Appreciate any advice.

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