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Stuart J
Stuart J, Solicitor
Category: Employment Law
Satisfied Customers: 22629
Experience:  PGD Law. 20 years legal profession, 6 as partner in High Street Practice
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Hi My employer has not been able to make pay roll this month.

Customer Question


My employer has not been able to make pay roll this month. The wages are only 1 day overdue but we have been advised that the company can not pay the wages until addtional money is put into the company by existing or new investors through a rights issue. So they have not been able to give a date when the owed wages wil be paid by
Are they in breach of contract ?
What is my legal status as an employee if I continue to work for this employer ?

Many thanks
Submitted: 5 years ago.
Category: Employment Law
Expert:  Alice H replied 5 years ago.
Thanks for your question. I will try and help you with this.

How much is owed to you?
Customer: replied 5 years ago.

Hi Alex


At the moment 1 month's salary £3500 (this is after deductions).

I have good will toward my employer and would like to continue working with them through these difficulties however I am very concerned that they will not be able to attract the necessary funding nor wind the company up in a timely manner.


Many thanks

Customer: replied 5 years ago.
Relist: Other.
I have simply been asked another question and then had no further reply
Expert:  Stuart J replied 5 years ago.

The company's wages liability
will be met by HMRC if the company is unable to pay the wages.

Does that answer the question?

Customer: replied 5 years ago.

Hi Law,


I had ticked the medium detail option so was looking for a little more info.

I am already aware through an internet search that HMRC will pay up £450 per week aginst unpaid wages. This would not cover my salary as above.



Specifically as my original query:

1. Is this breach of contract ?

2. What is my legal status as an employee of the company if I continue to work unpaid.



Many thanks

Expert:  Stuart J replied 5 years ago.

To be frank, an
answer is an answer and you get the same detail, regardless of which option you
tick, but we are happy to continue and elaborate anything which we have not
covered or is not clear.

If it is not
breach of a written contract because you do not have a written contract, then
it is breach of either a verbal contract or an implied contract.

I'm not altogether
certain what you mean by your legal status if you continue to work unpaid. You
become an unsecured creditor if that is what you mean.

Can I help further?