Any employment law type people lurking around here?

JeRkY

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The company I work for has been strugling financially for the past 18months really. We have survived on small very timely lumps of investment. Our contracts with the company state we have to give the company 3 months notice if we resign, and the company must do likewise if they want rid of us.

So when on tuesday morning there was one of those ominous meetings that led to an announcement that the company would run out of money at the end of the month we were all hanging on tight to the comfort blanket that is the 3 month clause in our contracts. It was also stated that they were still hopeful for further investment.

At the end of the meeting one of our 2 directors joked "dont worry hopefuly we have enough to pay you this month" with the 2nd director adding "and June, July and August". Which again reaffirmed the 3 month notice.

In previous such update meetings we had always been told they would not let the company run into a position where they could not afford to pay everyone their notice periods....Well guess what.

A passing comment on the way out of the office this evening to one of the directors lead onto us being told that actually we would not be getting 3 months notice, they don't have the money.

They told us the line in the sand that is the company bank account for paying everyones redundancy was crossed at the end of January. We were told this evening that they did not tell us at the time because they would of had to of started winding down the company. They did not want to do this because they were still hopeful of investment and no investor would put money in just to wind up the company.

So they went against all the assurances they had previously given us, failed to tell us at the time that the the line was crossed, removing the opportunity for us to make use of our contracted right to 3 months paid notice, in which we could be looking for further work.

At the moment the best possible outcome I can see is fingers crossed the new funding arrives, and then I hand in my notice to insure I get my 3 months pay before the money runs out again. (Funding request was for £250k, company wages bill is £50k per month...if it comes in we cant hang around long before the money is gone.)

I am simply shocked! Anger will follow, and then panic.

To top it all off I have fallen in love with London life, my job is rather specific (Medical Device Development Engineer) and there aren't many such titles on offer in the capital. Any future employment is likely to require a long commute out to Oxford or Cambridge, with eventual relocation being sensible. The lack of the 3 months also means I will likely be pressured into securing work as apposed to finding something really suited and increases the chances of me having to leave this city I have grown so fond of.

So any advice? Are the 2 directors (sole share holders of the company) liable in any way?
Any one know of any Islington based Medical device companies (because I sure dont) :(
 
the problem is even if you are entitled to the three months pay, and even if you take them to court to get the money and win, if they dont have the money to pay you then you wont get paid :(

if i was in your position, i assume the company you work for are a competitive player in the medical device development industry, i would look at a career change (easier said than done i know) as if they have gone under then the industry as a whole must be in trouble.
 
If the company is LTD then the only way they are going to go is into receivership/liquidation meaning an insolvancy pratitioner will come in to ensure all creditors get paid, cant remember if wages for employees use to fall under secure creditors if they do you may get paid out the sale of the company, not sure on company or insolvency law anymore been about 10 years or more since i worked in a telesales team for Commercial Debt Recovery

About wages owed if company goes
http://www.insolvency.gov.uk/freedomofi ... esowed.htm

general info on insolvency and liquidation
http://www.insolvency.gov.uk/


If they are not LTD in anyway and breach any contract as sole traders or partners they are liable and can be prosecuted as far as i am aware so long as liability in that way hasnt changed
 
in my experience ,you as the employee will be just about last in line for payment even then it may not be the full amount

3 months notice for you to leave is bollocks too
however if they employ more than 18 people and close they are meant to give 90 days notice or pay 90 days in lieu of notice
but , if theres no money then your screwed
also if you get a job within the 90 days notice ,(whilst your waiting for your money) you forefit the cash
shit situation ,but thats my contribution to it
 
Well a little bit of better news, company is still going down the pan, however we had a meeting voiced our concerns and argued legal and moral obligations. The end shot is they are now folding the company instead of hanging on in the hope of additional funding. By doing this and the 2 directors limiting their notice pay they believe they will be able to meet the contractual obligations to the employees.

This was a small firm start up firm working in immature markets on the fringes of medical devices and consumer products. The end has been expected for some time. The Medical device industry as a whole is relatively robust and I for one am looking forwards for the opportunity to properly get back into the industry.

So not great news, but better than yesterdays!
 
hope you dont get stiffed keep a note on the Insolvency links above especially the wages issue comes in handy if you find them messing about in terms of wages that you got a fallback
 
Also on the upside you are ideally located for a career shift temporarily. You might take a hit salary wise, but you will find something easily enough.

Best wishes.
 
Yeah thanks for that. Things are a little uncertain but not as desperate as they were looking last night.

I've never had a bar job, but actually quite like the idea for a little while at least!

That said I can always fall back on CAD contracts, dont pay huge amounts but they would cover the bills.
 

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