Employment Lawyers Can Answer Your Employment Law Questions
Iam owed £1308
Hi, the employer’s failure to pay you most likely amounts to an unlawful deduction from wages, which is made illegal under the Employment Rights Act 1996.
In order to try and resolve this, the employer should be contacted in writing, advised that this is being treated as unlawful deduction of wages and ask them to pay back the money within 7 days. Advise them that if they fail to pay the money that is owed, legal proceedings could follow.
If the employer does not return the money as requested, the following options are available:
Hopefully by warning the employer you are aware of your rights and are not going to hesitate taking further action they will be prompted to reconsider their position and work towards resolving this.
As to you opening a shop and working in competition, that in itself is in no way illegal or wrong. You have the right to open a shop, even in close proximity to the old employer and can work in competition if necessary, even taking their clients or allowing them to come to you. These issues would be dealt with by way of a specific restrictive covenant contained in your contract or a separate formal agreement, but as such did not exist then you will not be prevented from doing what you did and can safely work in competition or in the area, even if their old clients come to you as a result. This is just fair trade and the public can be given a choice as to who they use for these services.
Thank you for that reply,do you think her reply to my email asking for my wages to be paid ("my solicitor will be contacting you shortly, do not contact me again") was a bluff? what reason would her solicitor be getting in contact with me for?
Their shop has been shut since last Thursday and we have heard that they are closing it down and a close relative of theirs is opening it with a new name. It is a Ltd company. Will this have an effect on us collecting our wages? thank you
It could certainly be a bluff, even if there is no claim you could still be contacted by a solicitor and issued with threats about something - it does not mean they can actually sue you though. You have your rights to pursue in the meantime which you can do regardless of what she has said. Who was the employer before - was it a Ltd company, or was the employer self employed?
it was ltd
If it was a Ltd company then it will be responsible for its own debts, which means you cannot pursue the people behind it. So if it is closing down that could affect what you get back, although if necessary you can pursue insolvency proceedings against it to try and get anything that is left in it, like money or assets to pay for your wages - it is a long process though and without guarantee you will succeed, but if they are closing down it could be the only path to take.
the bosses partners sister is going to reopen it with a new name, it was Tempus nails and beauty in Wetherby, it is going to be called Red.
i was talking with acas and they said its still possible to try to claim back money from the person as the judge will decide, but I am not sure. can we use the TUPE act to claim back what we are owed, a new company is going to be formed but it will still be doing the same business, nails etc?
Highly unlikely you will be allowed to claim back from the individuals, this is very rarely allowed and only in serious cases of fraud or negligence and this is not the case here. You won't be able to rely on TUPE because you were not employees of the company when the transfer took place
is this all an elaborate ruse to get out of paying us? if they become insolvent then does all the stock etc have to be sold off to cover their debts, or will the new company use it?
I can't say if that is the reason for what they are doing now. If they become insolvent then the appointed insolvency practitioners will have to pay off any existing debts with the assets they have before any changes are considered
Do they have to be insolvent to close down the business? if they arent insolvent and close it down does this make any difference to us and our claim?should we try through the normal channels (acas etc) employment tribunal? to get our money back and then try insolvency proceedings?
No they do not, a business can be closed down at any time. You should try the normal routes first and if they then refuse to pay you and you have a formal judgment against them you can instigate insolvency proceedings to pursue the matter further
What about getting the money from the national insurance fund? does that happen when a company is insolvent and you cant get your money any other way?
the NIF can step in if the employer is insolvent and they are unable to pay you what you are due, although the amount you can recover will be capped. But for them to step in the employer would have to be formally made insolvent first
ok,sorry, one more question, if they close the company without being insolvent is the closed company responsible for their debts?
or the new one?
it would be the old one
so just simply closing wouldnt be an answer for them to get out of paying us?
well they can close it and move on, it would then be for you to pursue them and try to make them pay and instigate insolvency proceedings or take them to court if needed
ok, thank you very much
you are most welcome, all the best