Legal - boss has done a runner

[Willjt]

Hello all,

My sister has been working part-time as a waitress to earn a bit of extra cash while she's at college.
Recently she was given a cheque for approx. £140 (a months pay), but it's bounced.
When her and others turned up for work yesterday evening they found the restaurant empty and closed.

Is there anything I can do for her?
In the past here cheques have come from 'company name here' ltd., which I have found a registered address for through 'Companies House'.

I know some of you may think its only £140, so forget about it but £140 is a lot of money especially to my sister.

Thanks.

[wedg1e]

The sum is immaterial: it's yet another case of some chancer taking the piss.
No doubt he'll be back in business somewhere else shortly doing it all again.

[Piglet]

Unfortunately she's probably in a queue of creditors behund Customs & Excise, Inland Revenue and the bank. Having said that I have a vague recollection that there is some kind of statutory protection for employees wages? She should contact her local CAB ASAP, they should be able to advise her.

[Piglet]

No matter what they report on the telly trading conditions are at an all time low and getting worse. My shopping centre clients are losing tenants on a weekly basis - tenants who have previously traded very well.

[simpo two]

Probably zero, but it depends on how nice the man is. He might feel very bad about it and repay her privately.

It has happened. A friend of mine was left £4,000 out of pocket when an ad agency client of his went pop. However, the director started up a new business in the same area and over about 5 years paid most of it back. Didn't have to, but chose to.

[john75]

Unfortantly with debtors in my experince they hardly ever pay up I remember being £3k out of pocket once when a company I was working for went belly up.

[wedg1e]

anonymous said:

[redacted]

Wages cheque bounced. Do you make a habit of writing them if you know the money's not there? I don't.

[Piglet]

In fairness most small business owners genuinely believe they can trade their way out of difficulties. Then the bank pulls the funding and it all goes tits up. There are son con merchants out there but not all businesses that fail are run by fraudsters.

[wedg1e]

Piglet said:

In fairness most small business owners genuinely believe they can trade their way out of difficulties. Then the bank pulls the funding and it all goes tits up. There are son con merchants out there but not all businesses that fail are run by fraudsters.

Every small business I've ever been involved with has sailed close to the wind of illegality in some form or other. It's the only way you can survive in this country given rules and taxes. I even know of not-so-small businesses where the head honchos will chance their arm on something... sometimes they win, sometimes they lose (I know a guy who had to remortgage his house to pay monies owed to a third party overseas, that his business partner had no knowledge of - i.e. he was even fiddling his partner).

[Boosted Ls1]

She could represent the cheque in a week or so, you never know it might clear.

Boosted.

[srebbe64]

If you want to email me the name of the company I might be able to give you some relevant information.

[aldi]

I once got paid by cheque and the company folded, the only guy who got any money was the guy to took his to a 'we cash cheques' place.

[Willjt]

Cheers for the response all, I appreciate the comments that it may well not be his fault, however on the other I feel he has effectively robbed £140 from my sister.

Boosted - re: representing the cheque - this is what her bank has now recommended, thanks.

Srebbe64 - you have mail, thanks.

[blindswelledrat]

I am fairly certain the Government pay her wages in some format in this scenario.
Unfortunately I'm not sure who she needs to contact but I'm sure if she gets a number for 'The Official Reciever' from directory enquiries someone there will help!

[Thelemming]

aldi said:

I once got paid by cheque and the company folded, the only guy who got any money was the guy to took his to a 'we cash cheques' place.

IIRC if it bounces when they present it, they come after you for the money. Plus interest and fees. Not a good idea to use them if you have the slightest inkling the cheque might not go through.

[james p]

blindswelledrat said:

I am fairly certain the Government pay her wages in some format in this scenario. Unfortunately I'm not sure who she needs to contact but I'm sure if she gets a number for 'The Official Reciever' from directory enquiries someone there will help!

The Redundancy Payments Office looks after claims, helpline is 0845 145 0004. This is normally where the employer is formally insolvent, ie in liquidation if a company. The OP does not make this clear but claims can be made where there is no formal insolvency but I believe that addition information will need to be given. Leaflets etc can be downloaded from www.insolvency.gov.uk

[srebbe64]

Willjt said:

Cheers for the response all, I appreciate the comments that it may well not be his fault, however on the other I feel he has effectively robbed £140 from my sister. Boosted - re: representing the cheque - this is what her bank has now recommended, thanks. Srebbe64 - you have mail, thanks.

YHM