This isn't really an iva question but I'm really starting to panic here. The company I work for is struggling, we have no money and very little coming in creditors are now getting aggresive and the HMRC are threatening to seize goods to cover our unpaid VAT. I fear that my next salary payment which I had been told would be ringfenced and safe is now likely to go to the HMRC. What happens to me if that happens, it's highly likely the administrators are going to be called in next week ... will I get any money that I'm due?
Hi Suky
I have just been in this position, was made redundant 3 months ago. The administrators should give all employees a form to fill in, and you can then claim from the National Insurance fund. you should be able to claim for any wages actually owed, any holiday pay due, any statutory redundancy payment due, and after your notice period ends, you can claim your notice pay also. just be aware this is not a quick process, it is subject to limits on weekly wage, and also they will take out any money you 'would have been entitled to' eg JSA, whether you claim these or not.
This is obviously only applicable if you had been with your employers for more than 2 years.
usually your IP would allow you to keep up to 6 months' salary to live on whilst looking for new employment, and would take the rest.
I was 3 years into my IVA, so I offered half of my redundancy as a F & F, and it was accepted, hope this info helps, but be aware I am certainly no expert
I feel for you - I too have been in the unfortunate position of having once worked for a business that subsequently failed. (I remember we were all asked to take valuable office kit home with us every evening to prevent the risk of it being seized over-night!!!).
I saw the writing on the wall and bailed (found myself alternate employment).
Some of my colleagues were not so lucky, and were basically left high and dry. When that final Month's salary was never paid, they turned up to work next day to find themselves locked out (building had been boarded up & locks had been changed). The company had gone to the wall, directors did a bunk, and the workers left behind got nothing.
I don't know what sort of work you are in, or what employment may be readily available to you (I know it's a tough climate etc). But if you can find something else, you would be wise to go for it. You really don't want to be in a position where your salary is late, or worse, never paid.
Best of luck.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
dawnyosf's advice is spot on about how employee claims are paid out in the event of redundancy following the insolvency of an employer, but you don't have to have been employed for 2 years or more to claim your arrears of wages, holiday pay or payment in lieu of motice.
If your employer is going to call in Administrators, this does not necessarily have to be a negative process - as there may be a chance of selling some or all of the business, and if this happens then employee contracts transfer to the new owners.
I hope things get sorted out for you, and that this will not be necessary.
thanks all for your comments and advice. I've not been in the job for long enough to get any redundancy payout, i will however make sure i get any other money I'm entitled to no natter How long it takes. I work as an administrator for a land remediation company, Its Apparently been limping along since 2009 with one main Contract and the occasional small job. The main Contract finished about 2 months ago and nothing has come along to replace it. Its a fairly small operation now and to be honest i don't think it will be likely to find anyone to step in ... The work in this sector has dried up and we've cut back on staff to such an extent that there isn't really anything left. I've put myself out on the job market and have 2 interviews lined up for Next week. As has been said above, i think given my position i need to move on whatever happens, if the company survives this time i fear it will be short lived! I'll keep you all posted on the situation ... I will survive ... I've been made redundant from my last 2 jobs, I'm hoping 3re time lucky and i move on to something with a future!
Just heard this morning that there is no hope. our directors have a meeting with the Bank on tuesday next week which will lead to the inevitable. I have yet to hear the outcome of my 4th year review but hope that there are no monies owing from that year. I will try to put a F&F offer forward for sums already paid in and hope for the best. I've had a couple of interviews for other jobs so far but all unsuccessful ... all you need with christmas coming isn't it!!
So sorry to hear that news suky. I do a lot of corporate insolvency as well as personal insolvency, so if you need any support about what you can claim for please message me off-line. I do hope that you manage to find alternative employment very soon.
Thanks Melanie, as soon as I have some concrete information I will get in touch. My main concern at the moment is whether or not I'll get paid for my work in November, payday is normally next week but I suspect I'll have to go through the National Insurance Fund to get anything owing to me. With the iva, if I put in a F&F offer will my repayments be put on hold straight away because at the moment I have enough money to get me to payday but nothing beyond. Some sleep would be nice too ...
Your IP should agree to suspend your payments in the short-term Suky - although you could make this decision yourself by simply stopping paying them if you cannot afford to. Make sure that you do keep your IP informed.
I've cancelled the standing order and informed my IP, I've asked if I can put forward the F&F and for advice from them on what I need to do next. Thanks for all your help Melanie. Just between me and you the company will cease trading this week, I believe the bank are sending people in tomorrow, I will ask them what is likely to happen but I would like to take you up on your offer of advice. How is the best way to message you off forum?
Melanie , your dedication to the forum and advice to forum members, no matter if one of your clients or not is truly admirable ; I like im sure others do , often wonder how an earth you have both the time and energy to do so
You really are like everyone's favourite aunt who never lets anyone down. Well done and many thanks
Last payment made April 2012
Certificate received 1st Nov 2012
