Not Been Paid

Author
Discussion

Glyn84

Original Poster:

667 posts

179 months

Monday 1st September 2014
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We were suppose to get paid on 20th August but so far we haven't, 6 working days later. The reason I'm told is because a cheque needs to clear for a large job done over the summer (it's a small company) and then we will get paid. We do most of our work in schools, and they don't start again until this week and that is why it has happened. I don't believe the company is in financial trouble and this is the genuine reason, but it's the principle of it and how it effects me and the few other guys who haven't been paid either.

Everything aside, I know it's a breach of contract but how long should I be leaving it before I lose faith in their ability to pay, and say I am no longer working until I've been paid in full. Can I even do this, and would they have any come back against me?

Thanks in advance smile

Fotic

719 posts

128 months

Monday 1st September 2014
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Tell me the company name and I'll look at their financials for you if it helps.

Glyn84

Original Poster:

667 posts

179 months

Monday 1st September 2014
quotequote all
Thanks for the offer smile

Someone has already had a look for me as far as they can with a limited company, but all seems well financially over the years. Not great, but steady and consistent. As I say I do believe it's a genuine reason, but that's not really the point and we're left to suffer because they aren't organised this month.

anonymous-user

53 months

Monday 1st September 2014
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Do you work for building contractor/supplier by any chance? and are you involved in refurb/new build school projects where the EFA are involved?

essayer

9,011 posts

193 months

Monday 1st September 2014
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Start looking for a job ASAP.

A small company running out of cash to the extent it can't even pay staff is in serious trouble - and shouldn't be trading.

It'll happen again.. and again.. and one day there will be no money.

Glyn84

Original Poster:

667 posts

179 months

Monday 1st September 2014
quotequote all
MonkeyMatt said:
Do you work for building contractor/supplier by any chance? and are you involved in refurb/new build school projects where the EFA are involved?
We're a data cabling company/IT support company. We do the school refurb projects but they haven't caused any issues in the past to my knowledge. This is from a large project in a school they asked us to do, but because the office staff aren't in they haven't paid up, or so the story goes...

Vaud

50,291 posts

154 months

Monday 1st September 2014
quotequote all
essayer said:
Start looking for a job ASAP.

A small company running out of cash to the extent it can't even pay staff is in serious trouble - and shouldn't be trading.

It'll happen again.. and again.. and one day there will be no money.
This. They are in trouble.

ClaphamGT3

11,269 posts

242 months

Monday 1st September 2014
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If one late payment is causing a cash flow problem to this extent and the bank aren't interested in helping, then your employer is in serious trouble

Axionknight

8,505 posts

134 months

Monday 1st September 2014
quotequote all
essayer said:
Start looking for a job ASAP.

A small company running out of cash to the extent it can't even pay staff is in serious trouble - and shouldn't be trading.

It'll happen again.. and again.. and one day there will be no money.
I'm inclined to agree - I've been there myself and once this caper starts its likely to happen again.

Countdown

39,690 posts

195 months

Monday 1st September 2014
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Glyn84 said:
MonkeyMatt said:
Do you work for building contractor/supplier by any chance? and are you involved in refurb/new build school projects where the EFA are involved?
We're a data cabling company/IT support company. We do the school refurb projects but they haven't caused any issues in the past to my knowledge. This is from a large project in a school they asked us to do, but because the office staff aren't in they haven't paid up, or so the story goes...
It is theoretically possible. Schools do their major refurbs over the holidays. Final payment would only be released once the Headteacher is happy and, with it being holidays, sometimes the timings go a bit skew-whiff.

gaz1234

5,233 posts

218 months

Monday 1st September 2014
quotequote all
essayer said:
Start looking for a job ASAP.

A small company running out of cash to the extent it can't even pay staff is in serious trouble - and shouldn't be trading.

It'll happen again.. and again.. and one day there will be no money.
This

LaurasOtherHalf

21,429 posts

195 months

Monday 1st September 2014
quotequote all
Vaud said:
essayer said:
Start looking for a job ASAP.

A small company running out of cash to the extent it can't even pay staff is in serious trouble - and shouldn't be trading.

It'll happen again.. and again.. and one day there will be no money.
This. They are in trouble.
As a small business owner, I concur. When you can't/won't pay your staff it's only a matter of time. To put things into perspective,we've never borrowed in the business name but as we're going through a large expansion and doubling our financial commitments I thought it prudent to secure a £20k overdraft-simply to aid cash flow for the first few months.

The bank (large high street chain) gave me this without batting an eyelid. If a small Ltd company with a handful of employees and a relatively low annual turnover can secure this then either your employers are in serious trouble or are past the point of no return.

It doesn't take a behemoth of the business world to realise that your business is nothing without your staff in a labour intensive industry. No staff, no productivity, no money. Hell I'd take my chances with the taxman before I tried to withhold pay from the staff-and I really wouldn't want to take any chances with the taxman!

No offence meant by this but are you a valued member of staff? Are your colleagues? Or are you fairly replaceable?

jules_s

4,237 posts

232 months

Monday 1st September 2014
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Are the school paying or the LEA?

And who is project managing?

If the school are paying I would expect their BM to be available to settle bills in the holiday period

If its the LEA there will be a clearing period

Either way, as above, I'd be looking elsewhere for a job tbh

itcaptainslow

3,694 posts

135 months

Monday 1st September 2014
quotequote all
essayer said:
Start looking for a job ASAP.

A small company running out of cash to the extent it can't even pay staff is in serious trouble - and shouldn't be trading.

It'll happen again.. and again.. and one day there will be no money.
This. I know it's easy for us to say on a forum but, genuinely, this.

TurricanII

1,516 posts

197 months

Tuesday 2nd September 2014
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The next thing that will happen is suppliers who are also waiting for payment will stop giving the company 30 days credit so the company will be unable to buy computers/bits to install them.. +1 to update the CV

Vaud

50,291 posts

154 months

Tuesday 2nd September 2014
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TurricanII said:
The next thing that will happen is suppliers who are also waiting for payment will stop giving the company 30 days credit so the company will be unable to buy computers/bits to install them.. +1 to update the CV
Even if they aren't, it's a crappy way to treat your staff and time to move.

Glyn84

Original Poster:

667 posts

179 months

Tuesday 2nd September 2014
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I think it's clear I need to move on before it happens again and I get properly landed in the crap. Time to start asking some questions and applying more pressure I think...

Edited by Glyn84 on Tuesday 2nd September 11:49

AndrewO

647 posts

182 months

Wednesday 3rd September 2014
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Yep, been there on that one. A few late payments and then redundancy.

Helicopter123

8,831 posts

155 months

Sunday 7th September 2014
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As others have said, sounds like the business is now on a very slippery slope. We put up with much in our working life's, but failure to pay your wage is a game changer. Move on.

Quattromaster

2,904 posts

203 months

Sunday 7th September 2014
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Did you get paid OP