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Won employment tribunal - company now insolvent

5 replies

Recki40 · 21/10/2023 13:54

I won a fair amount at my employment hearing. The horrible employer has now made the company insolvent voluntarily and is trading as another company now with no changes for him other than a few bits of admin.

Is there anything i can do?

Go after the new company? Him personally? Its all ltd companies so i know he isn't personally liable.

There has to be something, if people can do this whats the point in going through the whole process of the tribunal!!

OP posts:
123ZYX · 21/10/2023 13:55

Had an insolvency practitioner been appointed? We're you recognised as a creditor?

Neriah · 21/10/2023 14:30

What is the point indeed? This is common, and people rarely get a penny. Assuming these are both limited companies, you can't go after him, not the new company. There a bloke round here I know had done this SIX times.

MrJollyLivesNextDoor · 21/10/2023 19:25

Nothing you can do I'm afraid

MillieVonPinkle · 21/10/2023 19:28

Depends on what you mean by insolvent- I'm assuming you mean dissolved as opposed to liquidated (as that's certainly not an easy or cheap process).

Depending on the amount, you can apply to have the Company forcibly restored I believe but it's a gamble for you as it costs. Worth checking out though.

Neriah · 22/10/2023 08:49

MillieVonPinkle · 21/10/2023 19:28

Depends on what you mean by insolvent- I'm assuming you mean dissolved as opposed to liquidated (as that's certainly not an easy or cheap process).

Depending on the amount, you can apply to have the Company forcibly restored I believe but it's a gamble for you as it costs. Worth checking out though.

It's extremely difficult to do and can cost £5k+, win or lose. And even if it is restored, it doesn't mean that the company assets are returned - that would then become a whole extra layer of court cases. Assuming there are assets to return anyway. It is, unfortunately, entirely legal to sell a companies assets to another company - even if it is a company with the same director(s). Even if the original employer wasn't dissolved, it is easy to sell on assets to a second company leaving an effectively dormant company with no assets to claim against for enforcement purposes. Unfortunately the record suggest that even where companies simply can't / won't pay and still exist, enforcement (which comes at a cost to the claimant) still rarely recovers the award.

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