[Closed] Company Insolvency

Sounds very very dodgy at this point and like they are trying to escape creditors, hide money etc. Do they own they van? Make sure you take your personal stuff out of it in case the actual owner pops round to collect it.

I'd get as much money as you can as quickly as you can now and then contact whoever's managing the wind up of the company to deal with the rest.

Don't sign anything other than a receipt for the amount (ie. 'I've recieved £N from Y'), certainly nothing that says 'in full and final settlement'.

Sounds like the owners are trying to do right by you but I'm an optimist.

strange but yes - and if insolvent then employment not paid can be reclaimed from GOV.
Have heard of this before where small business have called in receivers, but on last day would go round suppliers with cash payment for amount they're owed..

If the company has gone under then any monies paid out have to be agreed with the Receivers, so it sounds like the ex-owners are wanting to keep their ex-employees sweet by paying them from outside - take the cash!

You haven't the ability to negotiate with the Receivers, just give them the van back as it's neither the ex-owners nor yours.

Write a letter to the Receivers telling them what you are owed, it'll then be added to the debts of the business. There are also some statutory monies available, but I forget who pays these.

Now either find another job or sign-up as a Subbie with your old Bosses.

Cheers for the replies folks. Got a phone call from my boss saying that he would pay what he owed, admittedly in instalments. He does want me to subbie for him, so he knows I'm not coming back unless he coughs up. Fingers crossed it all goes okay. Cheers

I do hope you are using this time to find another job!!
If he is stashing cash and hiding it from the receivers (even if it is to make sure you get paid) then chances are it's not the first time and that any suppliers will be less than enthusiastic about supplying a company that looks and sounds like the one that just folded owing them a bunch of cash they are never going to see.

[i]in instalments[/i]

He's relying on you going back to work for him and will pay what he owes out of future income he gets from jobs you work on.

Tricky for you but if there's no money in the company then I'm not sure what you'd get from the receiver - I'd be talking to them though, his offer sounds a bit 'jam tomorrow'.

Sounds very dodgy! How can the business be going into liquidation, but you get Redundancy Pay from a private account, rather than the government Statutory Redundancy Pay scheme?

Some Redundancy Pay is not tax deductible, I cannot be sure now from when this happened to me in 2009, using government scheme. Calculation was based on number of years employed, age at time of insolvency, untaken hols and had an upper limit.

My corporate law is 30+ years old so I could be very wrong, but would you not have what is known as a "lien" on the van which you could hold until paid?
I would guess that would not include it's use, just holding it against the debt until paid.

Rich.

Is your boss also the owner of the company? The company has become insolvent and closed but he wants you to sub for him. I'm guessing he is just opening up a new firm and carrying on then?

My sister had this issue from a consumers perspective - building firm went under without finishing her extension which cost her £20K to get finished by a second firm. Silly girl had paid in installments as the job progressed but had clearly paid too much too soon. Schoolgirl error. 4 months later the owners of the firm are now driving around in a new van and back in the trade. Just don't seem fair.

Sounds very dodgy!

It is dodgy.

But in the OPs position, and to quote an old saying' "a bird in the hand is better than two in a bush".

If he digs his heals in and goes down the official routes he'll get nothing.

To the OP - take what cash you can get, but look for other employment asap. And make sure if you do do any more work for the guy you get paid weekly in cash.

I've not a clue about monies owed etc but if you are considering holding onto the van to use as leverage, like has been said, get your stuff out of it, block it in or put some kind of steering lock on it.

It may be leased or hired and they may come to get it.

Even if you have 2 keys, there may be others in an office somewhere. My mate bought a Sprinter a few months back ex lease and was given 5 keys to it.

But in the OPs position, and to quote an old saying' "a bird in the hand is better than two in a bush".

If he digs his heals in and goes down the official routes he'll get nothing.

To the OP - take what cash you can get, but look for other employment asap. And make sure if you do do any more work for the guy you get paid weekly in cash.

[I]Sounds very dodgy! How can the business be going into liquidation, but you get Redundancy Pay from a private account, rather than the government Statutory Redundancy Pay scheme?[/I]

He's not been paid redundancy pay, his old boss just wants/needs to keep him sweet by paying him what he's owed via future work.

Not particularly unusual (in the circumstances) tbh.

You normally get x amount in the pound back, say 20p for every £1 owed. Assuming he kept accurate records,the iinsolvency firm will know what you're owed but I guess its worth checking. Bear in mind there is apecking order for creditors with the ggovernment and banks near the top and employees near the bottom. Again the amount anyone receives is dependant on his current ability to pay.

Banks only get paid before employees if they are secured, and then only to the extent of the cash raised from the security.

Morning all,

Yep looking for a perm employed direct job at the mo so tidying up the cv and linkedin etc, but said I would subbie for him in the short term.

He's basically wound up the old company but with a bit of digging, found out he had started the new company a few months ago. So it's been on the cards a while then. Sadly, the only people that suffer really are the clients. I believe they've all been approached and told they can even draw a line under it all and pay nothing , alternatively have the new company complete the outstanding works for the remaining money owed.

Not sure how the cashflow side of things will work though, clients won't wanna to pay by instalments now, which has been the normal case. A lot had overpaid relative to the works actually completed. So it'll be a catch 22 now with the company having to find and pay subbies to do the works then involce the client's accordingly. Definitely don't intend to stick around too long, they will need some a serious look at how they manage the company otherwise it'll be deja vue all over again.

I gave the van back, to be fair I just wanted if off my driveway. First instalment should be with my today/tmw, and if not, I won't be on site Monday morning that's for sure.

I read up a bit on the government scheme etc, hopefully won't have to use it. 20p in the pound is a bit harsh. I know there's a good sized queue of creditors, mainly building suppliers and a few subcontractors.

I've been with the firm less than a year, so all I'm owed is outstanding wages, holiday and week's notice. How they pay I'm not concerned about. They said they would issue a P45 too which will just make it easier going into a new role.

[i]have the new company complete the outstanding works for the remaining money owed.[/i]

If the old company couldn't turn over enough on these contracts to remain solvent how will the new one?

Who knows? They used the situation to can a few larger/riskier projects and basically just walked away completely, which is shit. I think they just want to focus on getting the smaller jobs done asap as most of those ones are like 2/3rd complete anyway. I hope the boss has a plan as he'll be selling the sports car, the Harleys and the carbon road bikes he never rides otherwise.

I hope the boss has a plan as he'll be selling the sports car, the Harleys and the carbon road bikes he never rides otherwise.

Should he not just be banned for x number of years from being a director of a company in those situations? Leaving clients (read householders?) thousands down and setting up again to wipe the slate clean (and holding onto your toys, while they get to sell theirs to pay for his mess) should come with a penalty (or a knee in the bollox from everyone you have shafted); for no other reason but to protect the public from incompetent people.

[i]Should he not just be banned for x number of years from being a director of a company in those situations? Leaving clients (read householders?) thousands down and setting up again to wipe the slate clean (and holding onto your toys, while they get to sell theirs to pay for his mess) should come with a penalty (or a knee in the bollox from everyone you have shafted); for no other reason but to protect the public from incompetent people. [/i]

Only if he's deemed to have broken rules and be found guilty.

Or do a Sir Phil and get it sold on before 😉