Where do employees stand if their company goes into liquidation?

[Colinjb]

A friend of mine has just had their employer go pop. She wasn't paid as planned before Xmas and is owed something in the region of 400 quid, where does she stand, what rights does she have (if any)?

 

And no, she doesn't work for the Skates.

[Scummer]

I think employees are preferred creditors (ie they get first dibs on any money).

[Whitey Grandad]

This might help:

 

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073792368

[TopGun]

I think employees are preferred creditors (ie they get first dibs on any money).

 

After HMRC I believe.

[CB Saint]

After HMRC I believe.

 

No HMRC are non preferential.

[Saints11]

She stands in the que at the job office. . .whey!

 

Seriously though, I've no idea

[Clapham Saint]

A friend of mine has just had their employer go pop. She wasn't paid as planned before Xmas and is owed something in the region of 400 quid, where does she stand, what rights does she have (if any)?

 

And no, she doesn't work for the Skates.

 

She has a claim for her unpaid wages of £400 and also for any accrued holiday pay (although if her holiday year ran from Jan to Dec and she had used it all this won't make any odds).

 

The claim is preferential (and not after HMRC) however rather than wait in line for the liquidation to be concluded she can make a claim from the Redundancy Payments Pffice (i.e. Mr. Darling) who will pay her and then wait to be repaid by the liquitator.

 

We have a separate team who deal with these claims so I couldn't give you a link to a claim form straight away but the liquidator (whoever it is) would need to complete part of the form and so is better placed to help her anyway.