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Employer insolvent

3 replies

Growingexponentially · 27/04/2020 18:40

Sorry, this is quite long to try and ensure I include all information.

My son has ASD (the reason he has come to me for help rather than dealing with it himself) and has been working for an independent store and running their website for 2.5years. The business is too big for the government grants but banks won't give a loan as its not financially viable.

My son was told on 21/03 that all staff were being furloughed and the store was temporarily closing. After failing to procure any financial assistance the owner had to reluctantly tell all staff that they were being made redundant due to insolvency.

3 letters have been sent to DS from insolvency practitioners and we're not really sure what to do. The first letter told him to claim redundancy and notice pay from the government. He did that and has received confirmation that his request has been received and will be dealt with within 6 weeks.

In the mean time more letters arrived. The most recent (received on Saturday) gives him until the end of today to submit a Creditor's Statement of Claim. The other staff are all ignoring this, but it says on the paperwork that staff are preferential candidates and that the business owner is receiving an HMRC Refund (Furlough).

Is it possible for anybody to tell me whether DS should claim his wages for the time between the store closing and being made redundant? I've googled extensively but I'm obviously not typing the right thing because I can't find any information.

I can supply photos of the letters if that will help.

OP posts:
Growingexponentially · 27/04/2020 18:50

I still managed to leave out some information. He was made redundant on 15/04, so 25 days after being furloughed.

OP posts:
Growingexponentially · 27/04/2020 20:07

*preferential creditors

OP posts:
AlwaysCheddar · 28/04/2020 07:29

He needs to claim whilst he was employed, which includes when the store was closed.

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