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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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I am a self employed double glazing sales-man and i worked

Resolved Question:

I am a self employed double glazing sales-man and i worked for Roofright UK and its Sister company Carrington Windows ( both owned by the same people) . Each week they took a retention of 10 percent out of my wages in case of any cancellations etc. on the understanding that this would be paid back within 90 days of leaving. They have since gone bankrupt in the name of Roofright UK but are still trading as Carrington, I have spoken to several of the employees still there and they have had their retention money transfered to Carrington. I have requested my retention from them and they say that as my retention was with Roofright its gone, but I was working and getting paid from both companies at the same time, would I have a small claims case, The figure involved is around£1000 is it worth pursuing?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Which company did you actually invoice for your money? Was it both companies?
Kind regards
AJ
Customer: replied 2 years ago.

Yes I was working for both companies at the same time and they were paying me from both for a period of approx 18 months

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Can you work out who much of the retention money went to Roof right from the invoices?
Kind regards
AJ
Customer: replied 2 years ago.

yes i have all the payment slips

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
The invoices applicable to the company solvent you can work out what part of the retention they should be holding. Regardless of what they say if you invoiced them directly and they were retaining part of the invoice you are entitled to recover this money from them.
In relation to the insolvent company have you approached the liquidator to ask whether there are any monies available for distribution?
Kind regards
AJ
Customer: replied 2 years ago.

No I havent approached the liquidator but the director I spoke to said there was no longer any money/assets etc left in the Roofright company

Expert:  Alex J. replied 2 years ago.
Hi
Thank you.
Firstly contact the Insolvency Service and find out who the liquidator is https://www.gov.uk/government/organisations/insolvency-service
- You will need to at least make a claim in the liquidation. I would not listen to the director, it may in their interest to discourage you from making a claim especially if they are personally liable for any of the debts;
Secondly - send a copy of all your invoices made out to the solvent company against which a retention has been made. Ask them to confirm they are still holding this retention and demand payment of it. If they do not have you will have grounds to sue them for at least this part. https://www.moneyclaim.gov.uk/ - how much of the retention is attributable to the solvent company?
I look forward to hearing from you.
Kind regards
AJ
Alex J. and other Law Specialists are ready to help you
Customer: replied 2 years ago.

the retention was deducted from the roofright payments

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
My apologies I thought the retention was deducted from both companies.
Ok so in terms of the assets transferred from the insolvent company, you believe all the insolvent company cash was transferred to the solvent company?
Kind regards
AJ
Customer: replied 2 years ago.

yes as far as I am aware, I have spoken to other people who still work there and they have had their retention transfered to Carrington,

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
The liquidator will hold all the power to either claw the monies back from the solvent company or hold the directors personally liable for misappropriation of funds.
You cannot sue the solvent company directly unless the solvent company previously took in your funds. If they have done it by misappropriation then the liquidator is the only party with sufficient powers and rights to claw the money back for the benefit of the insolvent company's creditors.
Kind regards
AJ