Dissoved Company Owe Me Wages

[Lily2]

A few years ago, I was employed on a permanent contract for a startup with my travel expenses included. I was 'let go' by the company for being 'surplus to requirements' just before my first paycheque arrived. When my pay (and many other employees' pay failed to appear) I saught advice on what to do and was instructed to take the company to tribunal which I did. The director of the company did not appear at the tribunal and so I automatically won the case.

I was told that I may be able to claim the money back, however, for various reasons including personal life events and not being totally sure of the process, I did not put any claims in.

I recently investigated claiming the money back, however, was told that as the company was dissolved could no longer make a claim for the unpaid wages. However, I have also read that this is still possible to claim through national insurance and it should make no difference what the status of the company is.

My question is - is it still possible to claim unpaid wages from a company, even if it is dissolved?

I would really appreciate peoples help on this so I can get a definitive answer and tie this up once and for all!

[stevemLS]

Re: Dissoved Company Owe Me Wages

You can normally, have a look here https://www.gov.uk/your-rights-if-yo...ey-owed-to-you

However, if this was "a few years ago" unfortunately I suspect you will be out of time.

Technically, however, this is now not "unpaid wages" rather it is a judgment debt and so, in my view, would not be recoverable through the NI scheme in any event. As the judgment debtor has been dissolved you are an unsecured creditor.

Do you know when the company became insolvement? A search at companies house should tell you - I think this is the right link https://beta.companieshouse.gov.uk/help/welcome

How long ago was the Tribunal?

[Lily2]

Re: Dissoved Company Owe Me Wages

Hi Steve, thanks very much for your reply. The company dissolved in March 2011 and the tribunal was in January 2011.

[stevemLS]

Re: Dissoved Company Owe Me Wages

Lily, I'm sorry but I think you are going to have to put this one down to experience, best part of 5 years after the event.

You could still have enforced the Tribunal Judgment, but there is nothing to enforce it again and I imagine the affairs of the company have now been fully finalised.

[Lily2]

Re: Dissoved Company Owe Me Wages

Hi Steve, Ah ok, yes I guess it has been quite a while since it happened. When you say 'there is nothing to enforce it again', I'm not sure what you mean, does the tribunal not still stand 5 years on? Does time make a difference to enforcing tribunal judgements? Or could I have only pursued th money before the date of dissolving? Do you think it is even worth giving it a shot to find out? Sorry for all the questions :-/ just trying to make sense of it all...

[FlamingParrot]

Re: Dissoved Company Owe Me Wages

A few years ago, I was employed on a permanent contract for a startup with my travel expenses included. I was 'let go' by the company for being 'surplus to requirements' just before my first paycheque arrived. When my pay (and many other employees' pay failed to appear) I saught advice on what to do and was instructed to take the company to tribunal which I did. The director of the company did not appear at the tribunal and so I automatically won the case.

I was told that I may be able to claim the money back, however, for various reasons including personal life events and not being totally sure of the process, I did not put any claims in.

I recently investigated claiming the money back, however, was told that as the company was dissolved could no longer make a claim for the unpaid wages. However, I have also read that this is still possible to claim through national insurance and it should make no difference what the status of the company is.

It is possible to claim unpaid wages through the Insolvency Service Fund when the company in question goes into liquidation, however, that has to be done as soon as the company is put into liquidation, usually through the liquidators.

My question is - is it still possible to claim unpaid wages from a company, even if it is dissolved?

I would really appreciate peoples help on this so I can get a definitive answer and tie this up once and for all!

As above, it is possible to claim unpaid wages but in your case you obtained judgment so you'd be enforcing a judgment which is a totally different thing.

Hi Steve, thanks very much for your reply. The company dissolved in March 2011 and the tribunal was in January 2011.

That's a long time ago! Didn't you try to enforce the judgment back in 2011?

Hi Steve, Ah ok, yes I guess it has been quite a while since it happened. When you say 'there is nothing to enforce it again', I'm not sure what you mean, does the tribunal not still stand 5 years on? Does time make a difference to enforcing tribunal judgements? Or could I have only pursued th money before the date of dissolving? Do you think it is even worth giving it a shot to find out? Sorry for all the questions :-/ just trying to make sense of it all...

It's not so much that you cannot enforce a 5 year old judgment, technically you should be able to, for at least 6 years to start with, but that's not the point here. The point is that if the judgment was against a company that has ceased trading, then there is nothing to enforce it against, the company is dead, the legal entity has ceased to exist. :mmph:

[Lily2]

Re: Dissoved Company Owe Me Wages

I see. So really the only time I would have been able to claim on the tribunal judgement was in the 2 months between the judgement being made (Jan '11) and the company dissolving itself (Mar '11)? or alternatively through the insolvency service while the company was in liquidation?

[stevemLS]

Re: Dissoved Company Owe Me Wages

Hi Steve, Ah ok, yes I guess it has been quite a while since it happened. When you say 'there is nothing to enforce it again', I'm not sure what you mean, does the tribunal not still stand 5 years on? Does time make a difference to enforcing tribunal judgements? Or could I have only pursued th money before the date of dissolving? Do you think it is even worth giving it a shot to find out? Sorry for all the questions :-/ just trying to make sense of it all...

As Flaming Parrot says really.

The decision of the Tribunal does stand, but as the company has gone who would you be claiming against - there is no-one. Afraid I don't think it is worth giving it a shot no (apart from anything else, there is no-one to shoot!)

[Lily2]

Re: Dissoved Company Owe Me Wages

Thanks very much Steve and Flaming Parrot, it's a shame to lose the money but good to know where I stand with it all finally. Thanks very much for your help

[FlamingParrot]

Re: Dissoved Company Owe Me Wages

I see. So really the only time I would have been able to claim on the tribunal judgement was in the 2 months between the judgement being made (Jan '11) and the company dissolving itself (Mar '11)? or alternatively through the insolvency service while the company was in liquidation?

It would have been either one or the other, however, I suspect when you put in your ET claim, you may not have known the company would be put into liquidation in a few months's time, however, it's very likely the owners were already planning it and that's why they didn't bother to defend the claim; the decision to liquidate a company is not made overnight. You could have attempted to enforce the judgment while the company was still trading; once it was put into liquidation, it was highly unlikely there would have been enough assets to pay every creditor. Employees appear as creditors with a zero balance because any sums owed to them in wages, holiday pay, redundancy, etc. is claimed from the insolvency service but by then, you would have been classed as a judgment creditor rather than an employee. You could still have attempted to pursue the debt through the liquidators at the time, whether you'd have been able to get anything is another matter. :noidea: Obviously it's too late to do anything now, this is really just for future reference. :ohwell: