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Going out of business - how long do you hang on?

(13 Posts)
KatyMac Tue 02-Sep-08 20:49:53

My out going are bigger than my incomings - I'm going bust

I have to make choices I don't want to make

How do I make them?

How do I stuff up everyone else's lives?

Do I make them redundant? or lay them off?

Do I lose all of them or pick and choose?

To put it into context, I started a temp job today to enable me to pay the staff this month

LynetteScavo Tue 02-Sep-08 20:55:37

KatyMac - you are obviously such a nice person, but financially you need to lay off your emplyees, for your won financial sake.

Either CM by your self, or temp, and take the money and put it to good use. (Towards starting a nursery?)

You need to stop thinking of yourself as 100% responsible for your emplyees lives. At the moment, you are basically running a charity.

A harsh reality of running your own buisnes, is that there will be times when you need to "let people go" sad

KatyMac Tue 02-Sep-08 20:56:21

Lay them off or redundant?

compo Tue 02-Sep-08 20:58:27

what does it say in their contract? can you afford to pay redundancy?

georgimama Tue 02-Sep-08 20:58:36

Isn't it the same thing? If you are going to make some redundant, you need to exercise a proper process for deciding who, based on business needs and skills. ACAS website is really good for these kinds of problems.

If things are really that bad and you have a limited company you need to be aware of the risk of insolvent trading, this can get you into all sorts of trouble if you eventually end up in front of a receiver. Please seek proper advice asap.

KatyMac Tue 02-Sep-08 21:05:57

I can lay them off, if there is a possibility there might be work soon

After 4 weeks they can request redundancy

Or I can say redundancy straight off

I'm a sole trader

LynetteScavo Tue 02-Sep-08 21:32:20

How are you getttin on int the temp job? smile

LynetteScavo Tue 02-Sep-08 21:32:25

How are you getttin on int the temp job? smile

KatyMac Tue 02-Sep-08 21:36:42

One day in...& I'm not convinced it's me

fymandbean Tue 02-Sep-08 21:48:04

sorry to say this but you need to make the decision today or tomorrow and make redundant immediately.

decide how many you can afford, then put together some criteria for choosing the ones to go (you probably know who they are anyway but you need and explanation)

if you leave it you will go bust then they have ALL lost their jobs - better to loose a few quickly and survive.

KatyMac Tue 02-Sep-08 21:52:29

As they are working reduced hours - is redundancy at their previous rate or at their current rate?

I am writing letters & working it all out atm

KatyMac Wed 03-Sep-08 07:58:08

& do you use half years

I guess I phone ACAS again today

KatyMac Wed 03-Sep-08 16:00:16

Gosh redundancy is calculated oddly

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