Previous employer refuses to pay unfair dismisal compensation

[AnnaK53]

Just wondering if you can help me re a situation relating to my daughter who won her case for unfair dismissal. Her former employer has yet to pay up - £12,000.

Her former employer has a track record of running another business in tandem with his main company, in order to "write off" any debts he doesn't want to pay. My daughter's award for unfair dismissal award being one of them!

This is a potted version of what he's done:-

He put his last company into administration after he informed the bailiff he had no intention of ever paying my daughter. He practically threw them out of his office! He did it previously with another company when he had a big VAT or tax bill to pay. He has since formed another "tandem" business paying something like £5k a month to buy it.

He names his numerous new businesses (but now defunct) followed by Trading As then the name of his company. A new tandem business is always ready to go so all he does is wipe all his debts off but carry on trading as normal with all the same staff and customers just no debt. The debt he does pay off is to his factoring companies so he can continue to pay wages.

He submits his accounts as a small business but when his last company went into administration said he was a medium business with over 200 employees which is why he had to do it so he really is unscrupulous. Apparently what he does is not illegal! But how can my daughter get the money she was awarded and entitled to?

Hope this makes sense and that someone can help

thanks
Anne

[MrsD]

Re: Previous employer refuses to pay unfair dismisal compensation

Hi Anna

Welcome to AAD

This isn't my area and I'll ask our Employment Expert to look in but I did find thishttp://lindermyers.co.uk/blog/can-i-...lvent-company/

seems to be not great news, I would give acas a phone and ask them as they are supposed to be there to protect emplyees

[tastyjane]

Re: Previous employer refuses to pay unfair dismisal compensation

Hi Anna,

A couple of questions for you although I fear the outcome is not going to be that good for your daughter! I am assuming that all companies are set up as limited companies? Is he the sole director? Has he set up a phoenix company this time too?


If he has set up a phoenix company then the original company must have "bought" the goodwill and assets and your daughter could maybe challenge on the basis that these could have been sold undervalue so forcing monies to become available to creditors (of which she is one), but this would then be shared across the board. Has a liquidator been allocated to the winding up of the business? Your daughter could complain to them and ask them to investigate the conduct of the directors, but ultimately this wouldn't release funds but could mean that the directors are disqualified. Not any financial benefit as such but at least they would be unable to easily put other people in the same position.


From an employment law side of things her claim still stands but I am not a financial expert and don't have any experience liquidation and creditors rights but I suspect she will just join a long line of people the company owes money to.

Jane x

[SXGuy]

Re: Previous employer refuses to pay unfair dismisal compensation

From an employment law side of things her claim still stands but I am not a financial expert and don't have any experience liquidation and creditors rights but I suspect she will just join a long line of people the company owes money to.

Jane x

Thats my understanding also.

[AnnaK53]

Re: Previous employer refuses to pay unfair dismisal compensation

Hi Jane, thanks for your response. I've forwarded it on to my daughter. xx