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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49866
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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I havent been paid my final salary and holiday entilement. Just

Customer Question

I havent been paid my final salary and holiday entilement.
Just not to pay the wages for me and other 3 staff the owner of the cafe has put the company in liquidation.
The cafe is still running and the staff who work there have recieved their wages on time.
I have mailed him to give me my payslip and P45, which i havent recieved yet.
The accountant that runs the payroll has a mail written to him not to run our payroll.

Please help as i am in financial difficulties.

Ali Zakaria
Submitted: 4 years ago.
Category: Employment Law
Expert:  Ben Jones replied 4 years ago.

Ben Jones :

Hello, my name is Ben and it is my pleasure to assist you with your question today. If an employer becomes insolvent, such as going into liquidation, an employee can still issue and pursue legal proceedings against them for any pay arrears. Whether it is in fact worthwhile to litigate against an insolvent employer is another matter and very much depends on the status of the company and what, if any, money and assets they have left. In most cases, pursuing legal action against the company would not only be inadvisable but also pointless as they are unlikely to be able to satisfy any court judgment against them.

The first step would be to contact the company’s insolvency practitioners (administrator, liquidator, etc.) to check if it is likely for any money or assets to become available for distribution amongst the company's creditors, including their employees.

Employees will also have certain protection under the National Insurance Fund (NIF). The following debts, if owed to employees by an insolvent employer, can be covered by the NIF:

  • Up to 8 weeks' arrears of pay (up to the current maximum statutory limit on a week's pay) less basic rate tax and NI contributions.
  • Up to 6 weeks' holiday pay (up to the current maximum statutory limit on a week's pay) which accrued in the 12 month period ending on the date of the insolvency, less basic rate tax and NI contributions.
  • Statutory notice pay (up to the current maximum statutory limit on a week's pay) less basic rate tax.
  • The Basic award up to the current statutory maximum
  • Statutory redundancy payment less any amount paid by the employer

Any claims in excess of the above limits should be claimed from the insolvent employer in the usual way, such as through the insolvency practitioner or through court.

To be able to claim from the NIF, the following conditions must be met:

  • Only employees can claim, therefore the self-employed, agency workers, etc are not covered
  • The employer must have been made insolvent
  • The employee’s employment must have been terminated

Assuming the above criteria have been met, the procedure for claiming requires the application to be made to the Redundancy Payment Office responsible for the employer’s area, by using form RP1. To get a copy of the form and for further details, you can contact the Redundancy Payments Helpline on 0845 145 0004.

JACUSTOMER-wo5xuaav- :

I have not been redundant, i gave my notice 4 week. worked for 4 weeks and left the job.

Ben Jones :

I know you have not been made redundant, the above advice covers all possible payments that could be pursued, obviously you will not be pursuing redundancy if you are not made redundant

Ben Jones :

So in your case all you will be pursuing is the wages and holidays which you are opwed

Ben Jones :

Please let me know if this has answered your query or if you need me to clarify anything else for you in relation to this?

Ben Jones :

I hope this has answered your query. Please take a second to leave a positive rating, or if you are unhappy for some reason with the advice - please get back to me and I will assist further as best as I can. Thank you very much