Company closing down or at least that's what we are told.

[lesley64]

Hi,
my husband and myself have worked for 17 yrs in the same job, yesterday my husband had a meeting with the director informing him that the business could not pay us and is 'shutting down'.

We have not been given an information in writing of where we stand legally in this situation, although I do feel he'd prefer us to walk away from the job.

We were informed yesterday by a colleague who was asked to do some work that we would do i.e. Design work specific to our skills, so in theory the business is still up and running. Can you advice me of what information I can ask the director, so that i am given my legal rights as an employee when facing a loss of a job that I am aware is still going.*

I hope I haven't made the question too complicated as we're in a bit of shock at the moment.

Regards.

[ULA]

So sorry to hear the situation for you and your husband and no the question is fine and one that is completely understandable to ask given the circumstances

Firstly, I think you need to find out exactly what is going on i.e. is it just that he cannot pay salary this month or is the business in fact closing down? If so the next question would be is it happening in an orderly/planned way or it is via liquidation/administration?

If the business is closing then you would be entitled to a redundancy payment, however dependent on whether this is planned or forced may determine where the payments will come from.

If it is that he cannot pay your salary then this would be considered an unlawful deduction of wages for which you could bring a claim. However in not being able to pay current salary owed what is the prospect of the same situation not happening when your salary is next due? Which all comes back to the main question is the business still operating?

Hope that gives you a bit of guidance to start with but as you find out more about what is going on, please just come back to this thread to ask any further questions you may have.*
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