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Can you sue for loss of contractual notice period?

6 replies

goingbacktowork · 28/05/2012 20:46

Company gone into administration. No one has received proper notice. I understand that you can claim statutory notice from NI fund but does anyone know how to bring claim against administrators for loss of contractual notice period? Can you? Thanks

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applepieinthesky · 28/05/2012 21:47

You can claim for all your outstanding pay from the insolvency practitioner. There is no guarantee that the full amount you are owed will be paid as this depends on whether enough funds are raised from the sale of your employer?s assets.
Some debts, including holiday pay and wages, will be 'preferential debt' when your employer?s assets are shared out. This means they must be paid before certain other debts.

As full payment cannot be guaranteed, there are special arrangements for employees to claim the basic minimum of debts owed to them from the National Insurance Fund.

See these links here and here

goingbacktowork · 29/05/2012 05:40

yes I know the big picture but not sure "how" to claim against administrators. Do you know if preferential debts include the loss of notice?

Thanks for the links.

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IDontDoIroning · 29/05/2012 05:46

The insovency administrators will wind up the company and will arrangevto oay outstanding wages and holiday pay. I think they pay statutory redundancy too. Im not sure about contractual notice if its more generous.
The Redundancy payments office will make these payments if the company' is unable, you have to make a written claim fir this though. There are statutory maximums applicable.

goingbacktowork · 29/05/2012 06:17

Thanks. Will need to find someone to ask as my contractual notice is 12 times more than my statutory notice so makes a big difference.

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Brugmansia · 30/05/2012 08:43

In theory you can claim but the whole process will take ages and may be futile. for anything you can't claim directly from the insolvency service you will be an unsecured creditor. often there will be no funds or only very limited for unsecured creditors, eg 5% of what they're owed.

How many people were dismissed? If there were 20+ then you may have a claim for failure to consult you can pursue in the employment tribunal. This can be up to 13 weeks' pay. The insolvency service will pay up to 8 weeks of this, if you haven't already claimed 8 weeks unpaid wages from them. If you're in a union worth contacting them as they'll be able to help, but it is possible to run this type of claim yourself. My dp did a few years ago for his colleagues and won.

goingbacktowork · 30/05/2012 08:52

yes you are on point. I understand from the insolvency service that you have to claim for stat notice, wages and holiday first and then you can apply to employment tribunal for the failure to consult. Are you able to clarify with your DP if possible as that is the only part that did not make much sense as there will obviously be a delay with getting that done but at the same time you only have 3 months from redundancy to bring a claim. This is going to be useful for all of us as I am only due about 3 weeks stat money otherwise. Unfortunately we are not unionised so we have to do it ourselves but it is doable. Thanks very much.

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