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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46764
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I am shortly to be made redundant as our company in administration

Resolved Question:

I am shortly to be made redundant as our company in administration is being closed down. As the administrators are winding it up I am to get statutory redundancy only with notice capped at 3 months pay.

My contract says I should get six months notice. The administrators say I can claim as a creditor for the other 3 months, I have asked them a number of time how to do this but they have ignored my requests. There is little cash left so this route will get me practically nothing.

One other employee also on 6 months notice has been given a final payment by the administrators equivalent to 3 months pay. Can I sue them to make them pay me in full? Would I be liable to win based on their payment to the other employee as precedent. Both company and administrators are in Scotland.
Submitted: 3 years ago.
Category: Employment Law
Expert:  Ben Jones replied 3 years ago.
Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today. can you tell me when your company went in to administration please
Customer: replied 3 years ago.

28 March 2013. Are you a Scottish solicitor or does it make no difference in employment law

Expert:  Ben Jones replied 3 years ago.
no I am not a Scottish solicitor and the laws are similar. please leave it with me. I am in a tribunal today so will prepare my advice during the day and get back to you this afternoon. There is no need to wait and you will receive an email when I have responded. If this is ok with you if not I can put the question out to my colleagues I am not sure if there are any other employment lawyers on line.
Customer: replied 3 years ago.

That's ok. I'll wait for your email. I've got 2 weeks till they fire me!

Expert:  Ben Jones replied 3 years ago.
ok thank you
Customer: replied 3 years ago.

bye

Expert:  Ben Jones replied 3 years ago.
ok
Expert:  Ben Jones replied 3 years ago.
Many thanks for your patience. Just before I finalise my advice can you please clarify the following for me - you say that the colleague is on 6 months notice but has been paid only for 3 months, which is what you have been told you can get from them. How will you argue that they have set a precedent to pay you the full 6 months when the other employee was only paid for 3 months? Thanks
Customer: replied 3 years ago.

Each of us has 6 months contractual notice. Each of us will get only 3 months payment from the redundancy service. Yet my colleague who has already left was paid the equivalent of 3 months pay in her final salary by the administartors.

So effectively, she was paid 6 months notice, albeit 3 from the administrators and 3 from the redundancy service. hope this makes sense
thanks

Customer: replied 3 years ago.

Hello

I can't seem to get the site to take my response. So this is the additional info for Ben Jones. Each of us has 6 months contractual notice. Each of us will get only 3 months payment from the redundancy service. Yet my colleague who has already left was paid the equivalent of 3 months pay in her final salary.

So effectively, she was paid 6 months notice, albeit 3 from the administrators and 3 from the redundancy service. hope this makes sense
thanks


Fiona XXXXXXXX

Expert:  Ben Jones replied 3 years ago.
ok thank you
Expert:  Ben Jones replied 3 years ago.
Hi, sorry some technical issues delayed your response and I did not see it earlier. To sue the administrator directly would be rather difficult and certainly not recommended, especially as proving a claim against them directly would be complex. You are instead able to consider suing the company because it is they that you are a creditor of and they are the ones that owe you the money. The issue again is whether it is worth doing so. You will of course have to pay for the claim itself and the hearing fees. If you win, you will only be an unsecured creditor of the company and depending on how much money is left, you could either get nothing, or just a few pence to every pound you are owed. So you could actually end up worse off than before you started the claim. The fact that another employee was paid the months they were owed and which you are also owed, does not necessarily mean that you will get the same, especially as it would depend on the financial status of the company at the time you win. In other words if there is simply not enough money to pay you at the time, there is nothing you can do to force the company to find the money and pay you what you are due. When it comes to insolvent companies where money is obviously very tight, such claims would be very risky, so bear that in mind.

You may instead use the knowledge of the other employee’s payments and threats of taking legal action to try and negotiate a payout for the money you are due. However, if that is not possible, then the legal route is an option, albeit a rather risky one in the circumstances.

I hope this has answered your query. Please take a second to leave a positive rating, or if you need me to clarify anything before you go - please get back to me and I will assist further as best as I can. Thank you
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46764
Experience: Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
Ben Jones and other Employment Law Specialists are ready to help you
Expert:  Ben Jones replied 3 years ago.
Hello, I see you have accessed and read my answer to your query. Please let me know if this has answered your original question or if you need me to clarify anything else for you in relation to this? I just need to know whether to close the question or not? Thanks

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