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mkeay

Employer unable to meet obligations

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I have worked for an employer for 6 months.

 

They appear unable to meet there obligations. They appear unable to pay a contractor who did some work for us, and other organisations are phoning about unpaid invoices.

 

there are 3 permanent staff. If an employer is unable to pay wages (due to be received by employees mon/tues next week) when should they notify the employees?

 

What legal rights would i have if my employee is unable to pay my salary next tuesday.

 

I believe the situation is as follows - we are working on a project which is supposed to go live at the start of next month. The client receiving this will then be due to pay a significant sum putting the companies finances on a level playing field.

 

But I need to understand my legal rights if they delay or don't pay on the 25th of the month. I am looking for another job - but I need employment and a wage until that happens.

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So far as your rights are concerned, you have the right to be paid on the date (or the nearest working day) that your contract specifies, or on any mutually agreed alternative date. Once that payment is not made, the employer would be withholding wages, which could be considered an Unlawful Deduction (Section 13 employment Rights Act 1996).

 

So - if the salary is not paid on the expected date, speak to the employer in the first instance, or preferably write to him, pointing out that you have the right to be paid on time, and that any costs (bank charges etc) which result from non-payment will be for him to make good. Ultimately you may register a claim with an Employment Tribunal, claiming the missing wages plus those associated damages, however that would take time, (and ultimately, if the company was insolvent, there would be little hope of receiving anything), but very often a claim form landing on the desk, or just the mere threat may be enough to get the employer to pay up.

 

If the company were to go bust, then the National Insurance fund would make the basic payments that you are entitled to, such as outstanding wages and holiday pay, together with statutory notice pay.


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