Bad vibes where I work - subsidiary to close?
Discussion
Starting to become a little concerned that my current employer may be about to fold. Lots of management meetings, shouted phonecalls, etc- spurred on by employee gossip, of course.
The company is owned ("bailed out") by another company and relies on this for ongoing cashflow - rumour seems to be that the larger company has now got cold feet and the shareholders want out.
There's no way I want to work all of January only to be told on the 31st that "Sorry we can't pay you, the company is going into liquidation". However I've got 4 weeks notice, and nothing has been formally said, so I can't just walk out. What have others done in this situation?
Do I have any rights against the parent company if the subsidiary (that I work for) folds and leaves me with no pay for Jan ?
The company is owned ("bailed out") by another company and relies on this for ongoing cashflow - rumour seems to be that the larger company has now got cold feet and the shareholders want out.
There's no way I want to work all of January only to be told on the 31st that "Sorry we can't pay you, the company is going into liquidation". However I've got 4 weeks notice, and nothing has been formally said, so I can't just walk out. What have others done in this situation?
Do I have any rights against the parent company if the subsidiary (that I work for) folds and leaves me with no pay for Jan ?
essayer said:
The company is owned ("bailed out") by another company
Were you and your colleagues transferred over to the new firm via a TUPE arrangement ?If so you should have some form of protection and service with your original employer will have to be taken into account if they make you redundant.
I suggest you post this again in the "Jobs and Employment" section as there have been a few threads like this recently and some good advice has been provided to the OP's.
Best of luck.
Edited by Grey Ghost on Wednesday 16th December 12:51
No, we were not transferred.
My understadning is that directors of the other company bought the shareholding in our company, and have 'drip-fed' where necessary to keep the company trading. However, they no longer wish to put cash in and seem to be looking to cast the company loose.
I do struggle with the fact I am contractually obliged to work for January, and there is no guarantee I'll get paid for any of it.. naturally I don't want to walk out, as it leaves people in the lurch - but I guess you have to look after number 1..
My understadning is that directors of the other company bought the shareholding in our company, and have 'drip-fed' where necessary to keep the company trading. However, they no longer wish to put cash in and seem to be looking to cast the company loose.
I do struggle with the fact I am contractually obliged to work for January, and there is no guarantee I'll get paid for any of it.. naturally I don't want to walk out, as it leaves people in the lurch - but I guess you have to look after number 1..
missing the VR6 said:
Surely the solution is to get seriously job hunting right now and then if you get a job the current issue isn't an issue.
Sure, but what if the company folds end Jan? I'd have worked most of Jan and not got paid for it. If I was offered something to start on the 4th, should just take it anyway?essayer said:
missing the VR6 said:
Surely the solution is to get seriously job hunting right now and then if you get a job the current issue isn't an issue.
Sure, but what if the company folds end Jan? I'd have worked most of Jan and not got paid for it. If I was offered something to start on the 4th, should just take it anyway?If they did go bust you can claim unpaid pay from the Insolvency Service and they will also pay any redundancy pay BUT both are subject to quite low weekly limits.
ETA: See item 15 onwards: http://www.insolvency.gov.uk/pdfs/guidanceleaflets...
Don't know your job or circumstances but even if you did leave immediately, could you get another job straightaway and be earning money in January anyway?
Edited by Deva Link on Wednesday 16th December 14:55
essayer said:
missing the VR6 said:
Surely the solution is to get seriously job hunting right now and then if you get a job the current issue isn't an issue.
Sure, but what if the company folds end Jan? I'd have worked most of Jan and not got paid for it. If I was offered something to start on the 4th, should just take it anyway?Your posts read like you won't mind so much if it folds after payday?
As someone has already posted you'd get the unpaid wages/holiday pay/redundancy from the Government. Then you'd get ( at the least) contributions based JSA which pays your NI stamp contributions and £64.5 a week whilst you're looking for a new job.
My Threshers shop closed last week, and I'm now officially redundant and need to claim from the Government. When Unwins went into liquidation December 2005 it was the same thing.
I'd suggest staying put and wait for it to happen....but start job searching straight away.
My Threshers shop closed last week, and I'm now officially redundant and need to claim from the Government. When Unwins went into liquidation December 2005 it was the same thing.
I'd suggest staying put and wait for it to happen....but start job searching straight away.
I work for Insolvency Practitioners and can confirm that if your employer becomes insolvent then you can claim from the Redundancy Payments Office for your unpaid wages, holiday pay, notice pay and redundancy pay. These are subject to statutory limits which is currently set at £380 per week.
If you need any advice or help should this be the situation feel free to PM me.
If you need any advice or help should this be the situation feel free to PM me.
SiH said:
Simple, when they announce that they're going to screw you over you go and hire a van and remove items to the value of the amount of money that you're owed.
Just to add that if you do this and they do go into liquidation/administration/etc then you will end up being pursued by the Insolvency Practitioners so I really would advise against this.Essayer, you say you want to leave now because you don't want to work for January and then not get paid for it.
Have you considered what happens if you leave now and the company then doesn't go bust? You're going to look pretty silly signing on the dole whilst all your existing colleagues continue working, having been paid for January.
As has been said, keep working and start job hunting. If you get the job you want, hand your notice in and you're sorted. If you don't, then at least you've still got the chance that your current employer may not go bust.
Have you considered what happens if you leave now and the company then doesn't go bust? You're going to look pretty silly signing on the dole whilst all your existing colleagues continue working, having been paid for January.
As has been said, keep working and start job hunting. If you get the job you want, hand your notice in and you're sorted. If you don't, then at least you've still got the chance that your current employer may not go bust.
SiH said:
Simple, when they announce that they're going to screw you over you go and hire a van and remove items to the value of the amount of money that you're owed.
I remember when the staff of a dealer next door to somewhere I used to work at did this. One minute they were working, just a normal working day, next minute there was a kerfuffle, everyone was outside up in arms and they were using company/customers cars borrowed without permission and filling them to the brim with anything and everything in the workshop and doing runs home and back while the suits stood there helpless (and spineless) trying to talk them into 'being reasonable'. Cars were being filled with tyre machines, welders, tools, barrels of oil, racking, parts, tables, chairs etc. Basically anything of remote value. Gassing Station | The Lounge | Top of Page | What's New | My Stuff