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Company goes under, employees not in contract. HELP

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  • Company goes under, employees not in contract. HELP

    So, our boss came in about a month ago to tell us he was shutting down operations. We all left that day to be told we would be paid until the end of the week soon after (three weeks wages).

    That hasn't happened and we've now been fed a cavalcade of excuses. Our contracts all expired a few months ago so I'm just wondering if anyone knows where that leaves us or the next steps we can take? We worked in a co-working space so people can vouch for us being there.

    I've not confidence that he will get back to us at this point so what is my next steps of action. I've read a few things, but I'm not sure of the steps or order to take? Is sending a final demand for payment and if that's not answered then enforced liquidation (the company is still active on company house) the best route to take?

    Any help will be appreciated!
    Tags: None

  • #2
    (Responding to post for training purposes only. @Celestine)

    Hello

    I am sorry to hear this. Can you confirm if you were on a fixed term contract? (a contract that was for an agreed period of time with an end date) Also, can you confirm how long you worked for this company?

    When the end point of the fixed term contract*is reached, employment*is automatically terminated without either the employer or the employee*needing to do anything further. The short answer is that you are not obligated to work after the expiration date. Legally, failure to not renew a FTC is considered to be a dismissal.

    However, as you said that you continued working after it ended 'a few months ago' I can assume that you have been paid at least once since. This has formed a contractual agreement (although not officially in writing) and so you have the right to at least the minimum wage. As you have completed the work, you are entitled to the pay. Although, as you do not have an official contract, it may be harder to prove so if you have any emails/ documents/ messages containing any instructions for work or requests from your boss, please make copies.

    The next steps are looking into whether your employer is insolvent. More info here*https://www.gov.uk/your-rights-if-yo...r-is-insolvent

    Depending on your situation, you can apply to the government for:
    • a redundancy payment
    • holiday pay
    • outstanding payments like unpaid wages, overtime and commission
    • money you would have earned working your notice period (‘statutory notice pay’)
    Again, you will need to provide correspondence to prove you carried out work, but this may be difficult.
    I am a law student undertaking work experience on the LegalBeagles forum. My advice is from my own experience only and is given without liability. If in any doubt, please contact a regulated and insured legal professional to seek further advice.

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