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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 12206
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I have just transferred my sole trader business into a Ltd

Customer Question

I have just transferred my sole trader business into a Ltd co. I need to close the business as trade has gone from bad to worse. I have 1 employee who has been with me since I was a sole trader. I need to make her redundant, trouble is I have no money to pay her off. (If i had the money I wouldn't need to close the business let her alone let go of the employee) What are my obligations towards this employee? And what are my legal obligations in regards XXXXX XXXXX the business?
Submitted: 5 years ago.
Category: Employment Law
Expert:  Alex J. replied 5 years ago.

Thank you for your question and welcome to Just Answer.

If you put the business into liquidation and the business has no money then she will simply be a creditor against the business.

Are all her wages paid up to date? Does the business have any assets or creditors?

Kind regards

Customer: replied 5 years ago.

Hi thanks for your answer.

Her wages are paid up to date but im gonna struggle to even pay her 12 weeks notice.

The business does not have any debts. There are no assets per se

Expert:  Alex J. replied 5 years ago.

Thank you.

Do you know how much you can pay her?

Kind regards