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brickwall1958

Company dissolved owing wages

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My stepson worked for a garage for over 2 years and around February 2019 they seemed to have gone bankrupt sending him home but still owing him at least 2 weeks wages and holiday pay, around £1,000. He has been round to the owner's house but no-one was there. He has found another job but has 2 small young children and wasn't able to pay his rent due to not being paid. Companies house says the company is due to be dissolved at at 16.4.19. What should be his next move. Appreciate any advice. Thank you.

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He should have acted faster. According to your post the company is already dissolved. 

 

He can no longer claim to an employment tribunal as the company is dissolved - there is no respondent to name. The same applies to the small claims route - there is nobody to sue. 

 

He should have contacted the liquidator / insolvency practitioner before the company was dissolved. It may be worth trying to contact them to see if there is any  chance of them referring this to the redundancy payments service. But I suspect he may be too late, and his only other referral route would have been via a claim to an employment tribunal (where the judgement is unpaid). 

 

Sorry, but I think it's unlikely he'll now see this money.

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sadly it seems he has left it too late unless the liquidator has found a pot of money to be distributed so the first port of call be be that liquidator. they will be listed as such but they may well have already set a date by which all claims have to be submitted and that will most likely have been before the 16th.

If the directors are found to be personally liable  then he may sue them but you can do a lot of bad things before you get clobbered as a director by the insolvency service

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Companies House says 'Active proposal to strike off' which we don't know what it exactly means. Can anyone help please?

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https://www.gov.uk/strike-off-your-company-from-companies-register

 

If directors are late in filing their company accounts, and don't reply to warnings from Companies House, their company can be struck-off the Companies House register and therefore cease to exist. ... This measure will speed-up the process of deregistering a company name that has an active proposal to strike-off.


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Thanks for that. The information says about advising employees but stepson has been let go. They told him they were not renewing the lease but did not pay him monies he is due. Should he take some legal advice?

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Sorry, re-read this and I see the company is supposed to let former employees know if they are owed money. Still not sure what to do if he doesn't hear anything from them as there has been no communication since it happened and they sent him home out of the blue. Can anyone help with advice about his next step? Thank you.

 

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Difficult to oppose the dissolve and to get the company re registered ...also costs money to sue them to which your not guaranteed payment even with a judgment.

 

https://www.gov.uk/object-to-a-limited-company-being-struck-off

 

https://www.gov.uk/government/publications/company-strike-off-dissolution-and-restoration/strike-off-dissolution-and-restoration

 

 


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Even if the company has not been struck off yet, a small claim against an insolvent company is a waste of time and money - if, and there usually isn't, any money left at all, you would end up on a long list of people owed money. Possibly but not always, as an employee, you might get preferential status. All that means is that you are first on a list of people who will never get paid! 

 

The correct thing to do is to apply via an employment tribunal - but there are strict timescales to such claims, and you need to get the claim in when there is still an employer to sue. Then if the tribunal finds in your favour, and the employer is gone, it is possible to get the award through the government scheme - although seven that is not always simple. You might try approaching the Redundancy payments service, but I wouldn't hold my breath at this stage that they'll help. Their first port of call is on recovering money from employers, and at this stage they have no chance of that, and will probably argue that it's too late for them to intervene as they are usually called in by the liquidator.

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Not very good news! The employer just told him he may as well go as he wasn't going to re-new the lease on the building. Didn't even tell the truth about what was happening.

 

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8 minutes ago, brickwall1958 said:

Not very good news! The employer just told him he may as well go as he wasn't going to re-new the lease on the building. Didn't even tell the truth about what was happening.

 

Happens a lot. Two lessons. Join a union. When anything you don't like or don't understand happens, go to the union! Sorry. It's rubbish, I know. Lesson learned? 

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