Company in liquidation

[Goater14]

Hi first post on this forum, so apologies if it's long winded.
the company where I worked for 26 years sent a email on 29/3/19 saying the company will be place in liquidation and will cease trading at 4.00pm.
I returned to the office on the following Monday to return my company vehicle and mobile phone etc, and was informed by the MD that the liquidators would be in touch within the next couple of days with details about claiming redundancy etc.
Nearly 3 weeks have past and have not heard anything,?
All I have from.the directors was a email which they have not responded to.
Was advised to contact the company accountants which I did and was told that the company has not yet appointed a liquidator?
so not sure where I stand as was told the company has appointed a liquidators on 29/3/19 which clearly they havent, not sure how long these thing take but can't claim.any redundancy until I receive a CN number from the liquidators.
Also if the company have not yet appointed a liquidator and I return to work before they do am I still entitled.to claim my redundancy back fromthe GOV.

[ULA]

So sorry to hear about your situation and the uncertainty of whether a liquidator has been appointed. You can check here whether the company is being liquidated or going to provisional liquidation which may be a good starting point.

https://www.gov.uk/find-out-if-a-com...ancial-trouble

The liquidator once appointed should be provided details of all staff by the company and then you should directly from them.

This is a useful site explaining the process for claiming once you have your CN number, what you can claim for and what happens to the value of your claim if you find work in the meantime.

https://www.gov.uk/find-out-if-a-company-is-in-financial-trouble

If you have any further questions once you have looked at the above sites, then please just post them up here and we can provide more support.

[Goater14]

Thanks for the reply, just checked and it is showing company still active, so not sure where I or the other employees stand. All we had was a email telling us the company has gone into administration and will cease trading at 4.00pm on 29/3/19.
Just hope theirs not something dodgy going on.

[ULA]

Sorry just seen the second link I send in my post was a repeat of the first, this was the one I should have given.

https://www.businessrescueexpert.co....ide-employees/

I suggest that you write to the directors and the accountants requesting that since it is 3 weeks since you were dismissed due to the company going into liquidation and you have heard nothing directly from the liquidators you would request to be provided with their detail so that you can contact them directly in order to be given the relevant information to be able to claim from the government fund.

If the company does not actually go into liquidation and continues trading then more than likely you will have a claim against your employer which you would need to lodge with the Employment Tribunal within 3 months less a day of 29 March. However, I suggest that you see what if any response you get to the request for the liquidators information first.

[Ripped-Off]

Normally, when a company goes into liquidation, the liquidators (or the company) provide you with a reference number so that you can make a claim to the Redundancy Payments Service for unpaid wages, notice, holidays, redundancy etc if the company does not pay you.

Unfortunately, unless you have evidence that you have been dismissed and/or until the liquidator is appointed you are in limbo because technically you are still employed. If you leave that employment by your own choice you may lose the right to redundancy and notice payments. I understand that you can terminate your own employment if you have not been paid (unlawful deduction from wages pursuant to the Employment Rights Act) or you can commence winding up proceedings against the company for any salary or other monies owed but again you could lose out on redundancy and notice pay.

You should sign on if necessary (in the interim) to ensure your NI stamp is kept up to date. Also, look into whether your employer has kept up payments to any private medical, pension or other benefits that you might have.

[Goater14]

Thanks for the replies, my concern at the moment is if i return to work say next week I would not be entitled to any redundancy pay as the company has not yet entered liquidation even though we were told it has by email.

[ULA]

By returning to work are you meaning a new job, in which case without formal confirmation that the company has gone into liquidation then the company may consider that you have terminated your employment, in which case you would not be entitled to a redundancy payment.

I know it has been a long bank holiday weekend but have you written to the directors and the accountants as I suggested in post #4?

[Goater14]

Hi, managed to email a director on Thursday, hopefully may get more info this week.
Going to hang fire on going to a new job until I get formal confirmation as dont want to lose out on 20 years redundancy and also should be able to claim my 12 weeks notice period.

[ULA]

Fingers crossed you get an answer as I am sure this situation is very stressful for you. I have popped another link below which takes you through a series of pages about providing full details about what you can claim if it is finally confirmed that the company has gone into liquidation.

Do come back and update us on how you get on and if you need any more support you know where we are

[Goater14]

No news as yet, but have emailed the director again for a update. If no reply by Monday will phone the accountants and then ACAS.
What I find odd is drove past the company office this morning and all the company vehicles are still all parked up outside. As all the vehicles were leased I would of thought the leasing company would of pick the vans up by now as it has been now 4 weeks since we were told the company has ceased trading?

[ULA]

Very strange I would certainly chase this up with the accountant and ACAS on Monday.

[Goater14]

I was talking with another employee who reckons that maybe the directors have mothballed the company (not sure what that means and if it's allowed) until money owed to them is paid. And until then the employees are in limbo with regards claiming redundancy notice period etc.

[ULA]

Not sure what industry you are in but "mothballing" occurs when a business closes part/all of its operation but keeps the equipment etc in case there is a time when it can start up its operation again.

In this case my view is that this is still a redundancy situation as you are no longer required to carry out the work for which you were employed. In which case given the fact you have still heard nothing from any liquidator I would suggest you raise an employment tribunal claim for your redundancy money together with any other monies you may be owed such as accrued but untaken holiday.

There is a time limit for making a tribunal claim which will be 3 months less a day from 29 March when they closed.

[Goater14]

Managed to speak to the accountants today, who informed me a liquidator has been appointed. Wouldn't or did not know the name of the liquidator though, hopefully may get something resolved in the next few days.

[ULA]

Fingers crossed for you