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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50161
Experience:  Qualified Employment Solicitor
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The establishment I work at is being closed down. Its unknown

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The establishment I work at is being closed down. It's unknown whether or not the owner has been forced to do so by the local council or chose to do this himself. we have been given two weeks notice, however a number of us have been employed there for over two years. Me personally my employment has been seven and a half years.

How do I stand with regards ***** *****

Ben Jones : Hello, my name is ***** ***** it is my pleasure to assist you with your question today. Is the employer insolvent?



please answer

Ben Jones :

Hi, sorry the site was down at my end last night. If the company is being closed down then that would amount to a redundancy situation and you would be entitled to claim redundancy from your employer. It is irrelevant whether the reasons for the closure were due to them being forced to close down or doing it voluntarily. If the company refused to pay you redundancy then you have the option of making a claim in the employment tribunal to pursue the matter further. However, if you do so and win, all you would get is a judgment in your favour which you would then have to try and enforce – in other words it does not guarantee payment and you are still relying on the employer honouring that to get paid.


However, once you have a judgment in your favour you could try and seek insolvency proceedings against the employer because they will owe you a legal debt and if they refuse to pay that you could try and close them down by making them insolvent. The benefit of that is once the employer has been made officially insolvent you can try and pursue the redundancy payment from the Government’s National Insurance Fund as they can legally cover redundancy payments as well as any unpaid wages and holidays. However, they will only step in once the employer has been made officially insolvent and there will be a long process until that happens, but once it does you will have better protection.


Hope this clarifies your position? If you could please let me know that would be great, thank you


Thanks for the advice, yes it gives more clarity to my situation.

Ben Jones :

you are welcome, all the best

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