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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3497
Experience:  Solicitors 2 years plus PQE
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I am a director of a limited company with a 29%

Customer Question

I am a director of a limited company with a 29% shareholding. I am signed off sick at the moment and have been informed by my co directors that I am not receiving my salary this month. We are all employed on salary not salary and dividends. Can they do this?
Submitted: 5 months ago.
Category: Law
Expert:  Alex J. replied 5 months ago.

Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. Do you have an employment contract with the company as well? Are you paid PAYE? Kind regards AJ

Customer: replied 5 months ago.
I have a contract of employment and gross salary has NI and tax deducted monthly.
Expert:  Alex J. replied 5 months ago.

Thank you. Technically no this is not legal. As you are an employee it is a en unlawful deduction of your salary. The situation is you are still owed that money and the company is in your debt, you could sue the company to recover the money. Were you signed off sick on full pay?

Customer: replied 5 months ago.
My contract of employment states I will be paid sick pay for a maximum of 3 months on full pay. I have been off sick 2 weeks.
Expert:  Alex J. replied 5 months ago.

Hi, Thank you. Then this is an unlawful deduction of your salary. The company is indebted to you, the payment has accrued. You would have up to 6 years to sue for this money, but if they wont pay voluntarily suing for the money may be your only option. Kind regards AJ

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