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SolicitorRM, Solicitor
Category: Employment Law
Satisfied Customers: 5203
Experience:  Director and Principal Solicitor. UK
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If my start up bank has run out of capital and is closing do

Customer Question

Hi, if my start up bank has run out of capital and is closing do we need to still do collective and individual consultation? If so, can they be run simultaneously?
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: Nothing just literally found out
JA: Where is the property located?
Customer: london
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I think that’s it. Thanks.
Submitted: 9 days ago.
Category: Employment Law
Customer: replied 9 days ago.
We have 75 employees
Expert:  Virtual-mod replied 9 days ago.

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 9 days ago.
I still need a response. Also please note nearly all colleagues have less than 2 years service.
Expert:  SolicitorRM replied 8 days ago.

Good afternoon, welcome to just answer. I am a solicitor and have been asked to respond to your question. I should revert to you shortly.

Expert:  SolicitorRM replied 8 days ago.

Thank you for your patience. With 75 employees collective consultations is manadatory for all your employees except those on fixed term contracts unless they are also losing their work solely due to redundancy. You will have to complete the collective consultaion  first and then do individual consultations with those employees that have the minimum 2 years employment with you. From the sounds of it you will have fewer employess for the individual consultations.

I hope this gives you a direct answer to your question and if any clarification do not hesitate to send your follow up question. All the best.

Customer: replied 8 days ago.
Thank you Very much. Just to clarify this is the case even for a solvent wind down? There is no other mechanism for exiting employees?
Others In the business tend to think because the business will no longer exist there is no reason to consult or anyone for employees to claim against. They are even questioning whether it’s a redundancy situation. Any advice greatly appreciated.
Expert:  SolicitorRM replied 8 days ago.

Hi thank you for your message, it is still a redundancy situation however if you are liquidated before the consultations are complete and any payments made the employees will be applying for their redundancy through the website it will no longer be your concern. However you cannot neglect your duties in anticipation of liquidation.