Company won’t pay out threats

[coldel]

Quick one. Someone I know has been dismissed by his firm due to ongoing business issues due to C19, dismissed with immediate effect so have quite a few other employees. The firm is going to pay him a months salary claiming that’s in line with his contract. I had a quick look at it and the employer was wrong, it was in fact 6 weeks he was owed. My cousin went back to his employer saying contractually he is owed 6 weeks which the employer admitted to, but says if he has to pay everyone as per the contract he will go bust and they will all get nothing...views?

[2 sMoKiN bArReLs]

Looks like they are going bust anyway.

[2 sMoKiN bArReLs]

I'd wait until the month is safely in the bank and then consider the options.

[XCP]

I am no expert but it sounds like redundancy rather than dismissal. Dismissal implies wrongdoing by the employee.

[coldel]

Ok, to clarify, he employment was terminated due to financial issues driven by C19 - to confirm he was not dismissed due to anything related to performance or behaviour. As mentioned, he and quite a few others have been terminated and paying out everyone as per their contract would bust the company and boss is saying they would all then get nothing.

[paintman]

Not a certain chef by any chance?

[coldel]

Ha! No. Drives a van.

[2 sMoKiN bArReLs]

Length of service?

[coldel]

Over 7 years. Contract says he gets one months notice payment plus a week for every year over five years served.

[Durzel]

As has been said already if the difference between 4 and 6 weeks is the company going bust then he should probably be thankful that he is even getting 4 weeks worth.

[KungFuPanda]

What’s your cousin going to do if he doesn’t accept the four weeks? Go to ACAS and then an employment tribunal? How many thousands of cases do you think they’ve got to handle at the moment. You’ll be lucky if the tribunal hearing gets listed before Xmas.

Just accept the four weeks and move on.

[2 sMoKiN bArReLs]

coldel said:

Over 7 years. Contract says he gets one months notice payment plus a week for every year over five years served.

So he's being made redundant.

[2 sMoKiN bArReLs]

2 sMoKiN bArReLs said:

I'd wait until the month is safely in the bank and then consider the options.

What date have they said they'd pay the above on?

[Bennet]

coldel said:

paying out everyone as per their contract would bust the company

Ok.

coldel said:

and boss is saying they would all then get nothing.

This makes no sense.

[Jasandjules]

Why not ask for them to be taken back and put on Furlough in the first instance...

ETA - failing that, lodge a claim for the redundancy package owed.

Edited by Jasandjules on Wednesday 8th April 19:28

[coldel]

Bennet said:

This makes no sense.

Yes that’s the key point for me. I think the boss is pulling a fast one to save a few quid. I am sure it wouldn’t go bust, but then again is it worth the hassle for 2 weeks worth of wages...

[Glosphil]

If the OP has been made redundant after 7 years with the company than he is entitled to his contractual notice plus 7 weeks wages (which is tax & NI free). If the company cannot pay this than there is government scheme that will.

[coldel]

Glosphil said:

If the OP has been made redundant after 7 years with the company than he is entitled to his contractual notice plus 7 weeks wages (which is tax & NI free). If the company cannot pay this than there is government scheme that will.

Ok thanks that’s good news. I think for the sake of moving on this might be the best option.

[Glosphil]

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[Ian Geary]

KungFuPanda said:

. You’ll be lucky if the tribunal hearing gets listed before Xmas.

Xmas 2021