JuanFloEvraTheCocu'sNesta Posted June 7, 2018 Share Posted June 7, 2018 Do we have anyone here with a bit of know how in this department? Basically my current employer is being wound up meaning I am out of a job having been given 24 hours notice. I have been with them for three years and my contract states they owe me a months notice. It's an American company and they are closing down the EU office, who do I chase for the money? Does the American HQ have any legal requirement to pay me as the EU was under a separate legal entity? I have never really been in this situation before. Citizens advice were about as much use as a chocolate teapot, might have to find a solicitor to figure it out. Fortunately it looks like I have secured another job so I wont lose out too much, but I am not letting them get away without paying me what they contractually owe me. Link to comment Share on other sites More sharing options...
Day Posted June 7, 2018 Share Posted June 7, 2018 Have they said they won’t be paying you the months notice? Link to comment Share on other sites More sharing options...
Stive Pesley Posted June 7, 2018 Share Posted June 7, 2018 49 minutes ago, JuanFloEvraTheCocu'sNesta said: It's an American company and they are closing down the EU office, who do I chase for the money? Does the American HQ have any legal requirement to pay me as the EU was under a separate legal entity? I have never really been in this situation before. I think it depends on how the business is set up. I work for a US company but legally I am employed by a UK subsidiary with the same name. I assume you are paid in £ and pay UK income tax direct at source (ie it comes from your pay packet and is detailed on your payslip)? Link to comment Share on other sites More sharing options...
Sith Happens Posted June 7, 2018 Share Posted June 7, 2018 Acas would be a better bet than citzens advice. Things to consider aswell as your months notice are any accrued holiday which you will also be entitled to, plus additional benefits such as pension payments. Assuming you are paid in the UK and pay normal tax and ni etc then you will be entitled to a weeks pay for each complete year you have worked there capped at 480 a week if you are paid more than that. If you are over 41 its 1 and a half weeks per completed year, if any of your years are under the age off 22 its half a week for each year under. Link to comment Share on other sites More sharing options...
Rev Posted June 7, 2018 Share Posted June 7, 2018 Definitely use ACAS, they're very helpful in my experience. Link to comment Share on other sites More sharing options...
AdamRam Posted June 7, 2018 Share Posted June 7, 2018 Sorry to hear that, being there before with the company going into administration and not being enough money to pay me redundancy or previous months salary. The government will pay some cash to you, how much I’m unsure but I know I lost thousands as the result of it. Good luck on both getting some money and a new job. Link to comment Share on other sites More sharing options...
JuanFloEvraTheCocu'sNesta Posted June 7, 2018 Author Share Posted June 7, 2018 Thanks guys, I'll give ACAS a call. It's a UK subsidiary and I am/was paid in sterling with standard tax and NI contributions. Pretty sure the company will have the funds to pay me so I'll have to work the process. Link to comment Share on other sites More sharing options...
Coneheadjohn Posted June 7, 2018 Share Posted June 7, 2018 Sorry to hear this mate☹️ Link to comment Share on other sites More sharing options...
Sith Happens Posted June 8, 2018 Share Posted June 8, 2018 11 hours ago, JuanFloEvraTheCocu'sNesta said: Thanks guys, I'll give ACAS a call. It's a UK subsidiary and I am/was paid in sterling with standard tax and NI contributions. Pretty sure the company will have the funds to pay me so I'll have to work the process. One other thing worth asking about. Redundancy payments are tax free upto 30k but payment in lieu of notice isnt. However if there is nothing in your contract that says they can pay you in lieu of notice then technically they are on breach of contract and you can receive that tax free to. Not sure of the terminology but worth asking acas. Link to comment Share on other sites More sharing options...
Stive Pesley Posted June 8, 2018 Share Posted June 8, 2018 13 hours ago, JuanFloEvraTheCocu'sNesta said: Thanks guys, I'll give ACAS a call. It's a UK subsidiary and I am/was paid in sterling with standard tax and NI contributions. Pretty sure the company will have the funds to pay me so I'll have to work the process. Best of luck - I'm surprised that it's down to you to "work the process". I thought UK employmemt Law was pretty clear that if a company is laying off staff then they have the obligation to deal with redundancy agreements. Hopefully ACAS will help you I don't suppose you were a member of a union? My union are prettty hot on this stuff and very protective of their members Link to comment Share on other sites More sharing options...
A Ram for All Seasons Posted June 8, 2018 Share Posted June 8, 2018 2 hours ago, StivePesley said: I don't suppose you were a member of a union? My union are prettty hot on this stuff and very protective of their members My union was very supportive when my boss and his boss were arrested for fraud. Link to comment Share on other sites More sharing options...
JuanFloEvraTheCocu'sNesta Posted June 8, 2018 Author Share Posted June 8, 2018 2 hours ago, StivePesley said: Best of luck - I'm surprised that it's down to you to "work the process". I thought UK employmemt Law was pretty clear that if a company is laying off staff then they have the obligation to deal with redundancy agreements. Hopefully ACAS will help you I don't suppose you were a member of a union? My union are prettty hot on this stuff and very protective of their members Unfortunately not. My last post had a typo in it, my assumption is the company will not have the funds to pay me and the lads, so we will have to chase it via the administrators. Link to comment Share on other sites More sharing options...
Stive Pesley Posted June 8, 2018 Share Posted June 8, 2018 18 minutes ago, JuanFloEvraTheCocu'sNesta said: Unfortunately not. My last post had a typo in it, my assumption is the company will not have the funds to pay me and the lads, so we will have to chase it via the administrators. Ah right - I missed that fact! https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you Looks like you have some government protection so will be able to claim what you are owed Link to comment Share on other sites More sharing options...
JuanFloEvraTheCocu'sNesta Posted June 8, 2018 Author Share Posted June 8, 2018 10 minutes ago, StivePesley said: Ah right - I missed that fact! https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you Looks like you have some government protection so will be able to claim what you are owed Yeah I have seen that, it will be very helpful but saldy less than I am contractually entitled to. That is what irks me but I can't complain too much, at least we are covered unlike my American colleagues who wont be far behind and have much less support. Link to comment Share on other sites More sharing options...
1of4 Posted June 8, 2018 Share Posted June 8, 2018 10 hours ago, StivePesley said: Ah right - I missed that fact! https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you Looks like you have some government protection so will be able to claim what you are owed The employment laws in this country may give British workers some protection when being made redundant but they're not as good as some of the other EU countries. One of the times that I've been made redundant was because it was easier for the company, I was working for, to move production to their factory in Germany and make British workers redundant than it would to make the German workers redundant. Link to comment Share on other sites More sharing options...
Van der MoodHoover Posted June 11, 2018 Share Posted June 11, 2018 On 08/06/2018 at 11:52, JuanFloEvraTheCocu'sNesta said: Unfortunately not. My last post had a typo in it, my assumption is the company will not have the funds to pay me and the lads, so we will have to chase it via the administrators. Sadly I think that legally this means that you’re simply a creditor of the company (the eu subsidiary). You’ll be a priority creditor- well, behind hmrc but ahead of other suppliers. But if there aren’t enough funds in the company to meet all the claims £ for £ then there isn’t much fallback is my understanding. might be a legal claim against the directors if they were trading whilst knowingly insolvent but that’s quite difficult to prove (having tried to bring such a case to recover a lost loan). my sympathies mate and hope it works out. Link to comment Share on other sites More sharing options...
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