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Company gone into liquidation and pay owed help

5 replies

Mrsfussypants1 · 07/09/2022 10:36

Hi, I'm just posting for a bit of advice. Our son in law worked for a small company until last week. He was due his wages on the 28th September and nothing went in the back, his employer claimed this was an error. They went to work on the 30th, worked the whole shift and told of the liquidation at the end of it. They're boss has fobbed them of ever since about their wages owed (they've had a couple of late pays in the past which in hindsight should've been a red flag). Anyone any advice on how to claim back wages owed? TIA

OP posts:
StrikeandRobin · 07/09/2022 11:07

There’s some info here, I hope he can get his money owed.

www.ukliquidators.org.uk/director-advice/what-happens-to-employees-when-going-into-liquidation
Employees become creditors of the company for unpaid wages, holiday pay, and other outstanding amounts. For certain payments they’re preferential creditors; for others they’re unsecured creditors and therefore placed further down the line for payment.

As soon as the company enters liquidation, eligible employees can make a claim for redundancy pay and other statutory entitlements. As we mentioned earlier, it’s unlikely the company will be able to pay all of these liabilities given its financial position, so employees may have to make a claim from the National Insurance Fund (NIF).

Mrsfussypants1 · 07/09/2022 12:35

Thank you so much for this. It's been knowing who to turn to. All their bills come out centered around sil pay. We've helped as much as we can and paid their rent and gave them some cash but our pot isn't what it was due to dh losing his job during covid. Its all been such a worry. Thank you.

OP posts:
MarmiteWine · 07/09/2022 12:39

From GOV.UK

Sockbogies · 07/09/2022 12:41

Just to warn you - it can take a long time to get your money. The company I worked for went into liquidation (this is going back about 20 years so things might have improved? Or got worse - can never be sure!). I got pay from the government pretty quickly (the basic wage, capped, etc) - took about 6 weeks. My outstanding holiday, expenses and other stuff took 2 years.

HumbleApe · 10/09/2022 19:45

A couple of years ago I got everything up to the cap pretty quickly from the insolvency service (about 6 weeks I think) for unpaid pay, pay in lieu of notice, holiday pay, redundancy pay etc.

I've just got 2% back of what I was owed over an above the statutory cap

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