Many thanks for your patience. To answer your queries:
1) What is my recourse to the unpaid salary?
This potentially amounts to an unlawful deduction from wages, which is made illegal under the Employment Rights Act 1996.
Under law, an employer can only make deductions from, or withhold an employee’s wages in the following circumstances:
- If it is legally allowed (e.g. to deduct tax);
- If it is to recover an earlier overpayment of wages made by the employer; or
- If the employee has given their explicit written agreement for the deductions to be made.
If none of the above exemptions apply, the deductions will most likely be unlawful. In order to try and resolve this, the employer should be contacted in writing, advised that this is being treated as unlawful deduction of wages and ask them to pay back the money within 7 days. Advise them that if they fail to pay the money that is owed, legal proceedings could follow.
If the employer does not return the money as requested, the following options are available:
a) Employment Tribunal - the time limit to claim is only 3 months from the date the deductions were made. To make the claim, form ET1 needs to be completed and submitted - you can find it here: https://www.employmenttribunals.service.gov.uk/employment-tribunals
b) County Court – this is an alternative way to claim and the advantage is that the time limit is a much longer 6 years and is usually used if you are out of time to claim in the Tribunal. The claim can be made online by going to: www.moneyclaim.gov.uk.
Hopefully by warning the employer you are aware of your rights and are not going to hesitate taking further action they will be prompted to reconsider their position and work towards resolving this.
2) What is my recourse to the £15,000 paid in share capital?
This is a corporate law query rather than an employment one so sadly I cannot assist with it but you can ask it as a separate question to our corporate lawyers on our site.
3) I have 3 months notice period on my contract. Since my employer is in breach of contract, does this still mean that my 3 months notice period still applies? This would mean that I would have at least 3 months wort of salary arrears, which seems completely unfair to me an employee. Or does this mean that since my employer is in breach of contract by not paying me my monthly salary, that the contract no longer holds water and than I can choose to leave whenever?
You would be able to leave with immediate effect if necessary. As the employer has acted in breach of contract then the whole contract can be considered void, together with its terms, including the requirement for you to serve a notice period on leaving. You may therefore claim that you have been constructively dismissed and leave with immediate effect.
4) If my employer were to make a salary payment weeks late, is late payment still considered breach of contract?
If there was a specific payment date stipulated in the contract then the delayed payment would still be a breach of contract, even if you ended up receiving the money due. The requirement is to pay a specific amount by a specific date and only meeting half of that does not mean they are no longer in breach.
Hope this clarifies your position? If you could please let me know that would be great, thank you