 | Home > Off Topic > Girlfriends work has no money to pay her-advice? |
 
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| shaggydog Member Since: 12 Aug 2012 Location: Kent Posts: 3347   
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Hi guys,
Bit of advice really on this one. My girlfriend started working for a non-for-profit company locally in June, at the end of the month they paid her a day late and blamed administration errors for the late payment being as she is a new starter. Yesterday the company boss came into the office and said we cant pay anybody in the whole company, or the projects it has been running because the company has completely run out of money. They wont be able to pay her next month ether. She has not been made redundant, she has not been fired or given notice of leave, the boss has just said keep coming in we will pay you what we can when we can. We live in rented accommodating and don't have much in the way of savings. We can probably survive 3 months with our projected bills. We need to get in touch with Citizens advice and local council as well as job centre to work out our rights. I spoke to the landlady to let her know our situation. Her response was well if you cant continue with the tenancy we will have to negotiate termination. Needless to say, its all a bit much and a bit sudden and we don't really know what to do. Has anyone got any advice? Pm me if its too personal to put in public  Running Restoration Thread http://www.defender2.net/forum/post323197.html#323197
Self confessed mileage hunter  |
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30th Jul 2016 4:39pm |
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| K9F Member Since: 12 Nov 2009 Location: Bournemouth Posts: 9610 
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Get another job soonest. The company has no shown her any decency or courtesy, why should she do the same? If you go through life with your head in the sand....all people will see is an ar5e!!
Treat every day as if it is your last....one day you will be right!! |
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30th Jul 2016 6:32pm |
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| VeeTee Member Since: 06 Mar 2011 Location: Somewhere Posts: 1512 
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As above. Good luck. Cheers, Vincent
1959 Polynorm 1/4 Ton Trailer, Olive Drab Green (sold) 1970 M416 Military Trailer (Camping Trailer Conversion), Epsom Green (sold) 1975 Series III 88 V6, Light Green (sadly sold) 1996 Defender 110 CSW 300 Tdi, Epsom Green (sold) 2000 Freelander 1 TD4 3-drs, Silver (sold) 2006 Freelander 1 TD4 5-drs Facelift Automatic, Tonga Green (sold) MySite |
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30th Jul 2016 6:42pm |
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| shaggydog Member Since: 12 Aug 2012 Location: Kent Posts: 3347
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Don't worry she is applying for everything in a commutable distance!
I am looking at weekend work too, hoping to get some hours in local garages or even waiting tables. I'm not proud, I'll work for money Running Restoration Thread http://www.defender2.net/forum/post323197.html#323197
Self confessed mileage hunter |
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30th Jul 2016 7:00pm |
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| languedoc Member Since: 13 May 2016 Location: Edinburgh Posts: 283  
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Happened to friend in Glasgow years ago and he asked for shares in lieu of outstanding salary that they couldn't pay. Company turned itself around 5 years later and he got lucky.
Not a solution for the time being but worth mentioning |
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30th Jul 2016 7:06pm |
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| TimDaw Member Since: 13 Dec 2015 Location: Wiltshire Posts: 43 
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What a ****y situation. As she is a new starter probably best to just walk away as fast as she can, don't waste time going into work which could be spent job hunting. I hada similar thing but for a company I had been working for for five years. I said if you can't pay me I'm going on "gardening leave", they tried to get me to resign but I wouldn't as they owed me a lot of money. After a year I got my solicitor to write a letter reminding them I was on gardening leave and still was on a salary even if it wasn't being paid due to cashflow. when a year later the company went bust I got a decent wedge of redundancy from the Gov who pay if companies can't afford to.
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30th Jul 2016 7:11pm |
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| Caterham Member Since: 06 Nov 2008 Location: Birmingham Posts: 6298  
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/\ good idea.
in the meantime you can still be looking for a job - there's not law against that. good luck and sorry to hear of your problems. |
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30th Jul 2016 7:33pm |
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| RFT Member Since: 13 Nov 2010 Location: Cheshire Posts: 678 
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Company is probably insolvent and will collapse so she needs to formally write to the directors detailing the exact amount of money owed. She should also check with inland revenue to verify that her PAYE tax and NI have been paid for previous month.
How much have the controlling directors removed from the company ????? 130 Puma HCPU with an Artica 240LR Demountable Camper |
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30th Jul 2016 8:27pm |
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| blackwolf Member Since: 03 Nov 2009 Location: South West England Posts: 17354 
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It is illegal to continue to trade when insolvent, or to continue to trade if unable to pay staff (often a cashflow problem rather than insolvency). I strongly recommend getting professional advice asap (you should be able to get free advice), and it sounds as though the boss should take advice too - it is quite possible that the directors may become personally liable if they continue.
My sympathy as well, this is a rotten and very stressful situation to be in through no fault of your own. |
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30th Jul 2016 8:49pm |
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| Pickles Member Since: 26 May 2013 Location: Melbourne Posts: 3783  
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Yep, Ya gotta see the right people NOW.
Don't know your "rules" etc, but that "company" has to be let known to the right Government?Legal people,....you can bet ya bottom dollar that the Owners/Directors are still lining their own pockets, so ya gotta put a stop to that NOW. Pickles. |
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30th Jul 2016 9:08pm |
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| adbseries3 Member Since: 27 Apr 2016 Location: sussex Posts: 49 
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As Blackwolf says you can't trade if insolvent so Directors may be personally liable,if a partnership definitely so. There is guidance on the net, solicitors pricey but citizens advice helpful. Good luck.
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30th Jul 2016 9:26pm |
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| shaggydog Member Since: 12 Aug 2012 Location: Kent Posts: 3347
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Its all a bit dodgy from what I can tell as it is a non for profit organisation so technically a charity.
From what I can tell, and without giving too much away or getting myself into liable issues (  ) is this.
The overheads were more than what was coming in. I have been told say no more than that... From what I know, the director is as skint as the company so I don't know what suing him would achieve other than making the solicitors money. We don't really want to go through small claims court as we don't have the money to do so. Plus it would probably cost more than her months wage to get her months wage. Plus as the company has no money, they will probably pay it at £5 a month or something unhelpful like that. What we need to know, is the company has no money and they cannot guarantee to pay her. At this point, what is she allowed to reasonably demand from the company. I just feel really helpless as it was a bit of a jump for my girlfriend and I really wanted her to thrive and do really well at this but ultimately due to someone else's negligence she is now not being paid and we are the ones who are in the  .
Thanks for the advice guys, so much life knowledge and just knowledge on here  Running Restoration Thread http://www.defender2.net/forum/post323197.html#323197
Self confessed mileage hunter |
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30th Jul 2016 10:54pm |
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| JR Member Since: 07 Dec 2012 Location: Auchtermuchty Posts: 532 
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I'm with Blackwolf. And it imperative that she and everyone else gets what management said regarding no money to pay anyone this and at least next month followed by come in as normal and they'll pay you when they can down on paper, and signed!
Armed with this letter she may be able to get some help from your council. This help could be Housing Benefit and Council Tax Benefit for example. |
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31st Jul 2016 7:49am |
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| languedoc Member Since: 13 May 2016 Location: Edinburgh Posts: 283
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The government have a compensation scheme for this but the company need to either voluntarily liquidate, which costs approx £5000 and unlikely they will have that, or alternative is a creditor getting a court to do it. Most creditors wont do this if the company is insolvent unless its asset rich. VAT, PAYE and corporation tax is collected first and rest is split according to type of creditor. Unless directors have signed personal guarantees, I don't think your girlfriend will be a priority.
The only glimmer of hope is they haven't paid tax up to date because Inland Revenue will close the business and you the insolvency company instructed by court will organise your compensation. Check on Company House website for the condition of the company. |
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31st Jul 2016 7:57am |
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