Insolvency problem. Everyone in company paid except me

[nkomp18]

Hello,

 

I have been working for a few years at a company and I resigned in December, my last day was on the 15th of January.

 

My company went into administration a week ago and KPMG is the agent handling the company now. The January wages were paid to everyone int he company except me.

 

They said they are only willing to pay those who are still with the company, since my last day was 3 days before the company went into administration they see no reason to pay my wages, which is a sizable amount.

 

I need to point out that I left legally, after serving my 1 month's notice and aside from the obviously discrimination and unfairness of it all, I have no way of fighting this.

KPMG told me to seek help directly with the Redundancy Payments Service (even though I wasn't really made redundant) and it looks like I would get a small fraction of what they owe me if I succeeded in the claim.

 

I seek some advice from someone experienced. Is there a way to reason with the administrating company for such an obvious injustice using a legal standing that they will acknowledge? Just telling them that it's unfair won't help, I need a more tangible way of doing it.

 

Thank you in advance

Nick

Edited January 24, 2015 by nkomp18

[numbers666]

Hi,

 

I will ask and maybe assume somethings....

 

- your last day of employment was 15/1/15

- date of admin 18/1/15

- usual date when salaries paid ?

- was P45 issued

- is the company paying the salaries due and any stat redundancy ?

- do you have home insurance with legal cover ?

 

https://www.gov.uk/your-rights-if-your-employer-is-insolvent/claiming-money-owed-to-you

 

As you are owed wages / salary you have a right to claim from the NI fund.

 

I am stretching here, that KPMG are mistaken in believing you can go on the un-sec creditors list.

 

N

[Emmzzi]

I think the amount you can claim from the government is indeed capped at £470 a week, and for the rest, you are an unsecured creditor of the company.

[nkomp18]

Question about what unsecured creditor actually means.

 

If the company gets sold or liquefied and funds do become available, aren't they obligated to pay me my wages?

 

- my last day of employment was 15/1/15

- date of administration was 19/1/15

- usual date when salaries paid 23/01/15

- was P45 issued (not sure, I've been told they'll post it at some point, they might have already done that)

- is the company paying the salaries due and any stat redundancy ? They paid everything to others today, nothing to me. I was service my notice between mid December and mid January so I don't think I was made redundant.

- do you have home insurance with legal cover ? Nope

 

I feel it's extremely unfair because if they have funds to pay all employees, why would they segregate me just because I happen to have my last day at the office a week earlier? Isn't this discrimination of some sort?

[Emmzzi]

I am sure you do feel it is unfair. But why are you more entitled to the money than say, a small supplier who let them have office supplies on credit?The remaining staff are keeping the business running as a going concern. You have to pay them to keep the place running while you work out if the position is recoverable. You jumped ship therefore no need to pay you. it's simple economics, not personal.As assets are sold creditors will be paid out; everyone will get a %age of what they are owed. May be buttons, may be 50%, may be almost all of it if you are lucky.Morally unfair is not the same as legally unfair.I am hoping you have a new job you are enjoying and hopefully more certainty of your employment future than your no doubt worried ex colleagues. What price peace of mind?

[nkomp18]

The remainder of staff got paid their full wages and will continue to get paid for as long as the company remains in administration.

 

If I had left a day later I would have been paid too. This large amount of arbitration and custom rules seem to serve no purpose and make little difference. Paying the wages of 300 people and leaving one behind is hardly a case for putting precedence over other unsecured creditors. I was no less of an employee than anyone else, in fact in terms of payroll t I was in the exact same situation as everyone else.

 

What I need to understand is what these legal terms mean, I have been advised by KPMG to claim via the Redundancy Payments Service which from what I can see could only provide me with a tiny fraction of what is actually owed to me.

They are now discussing selling the company as well as other solutions for my ailing employer and I need to know, should they find a solution and funds do become available, will they be legaly required to compensate me for what is owed and the services rendered? Will I still be eligible for compensation after going through Redundancy Payments Service?

 

Something like this has never happened to me before and I am inexperienced.

[numbers666]

You will need to claim from RPS or what is the NI fund. It is capped at a weekly limit.

 

Balance will be due from divi to un-sec.

 

As Emmzzi states big difference to moral and legal. I have been in the same boat.

 

Make sure you do go through the RPS tho, ensure your stamp / paye is sorted.

 

I do feel for you.

[nkomp18]

I will claim via RPS. What does "Balance will be due from divi to unsec" mean?

 

Is there hope to get something more from the company if a successful sale goes through?

RPS is very little indeed compared to what is owed.

[Emmzzi]

the key legal point is that you were no longer an employee at the point of administration.

 

divi to unsec is dividend to unsecured creditors i.e. the %age of what you are owed you all get

[nkomp18]

Okay so what I am understanding from all this is that I can claim whatever little I can claim from the government and then if the company gets sold or liquefied I can get a percentage of the rest, depending what is available.

 

That's what I wanted to know.

 

Thanks for the help