J
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If a business is liquidated because the only shareholder has died intestate i.e. without a will then the staff will be made redundant. Employment legislation will apply in these circumstances and if you suffer any loss of wages or redundancy you will have to make a claim from the Insolvency Service Redundancy Payment Office/National Insurance Fund.
It is not 'compensation' as such but a recovery of losses. Before worrying too much you need to find out what your employer's intentions are but I am sure they will inform you all shortly.
Do you actually know if there are any other Directors/Shareholders? The spouse of the business owner may actually be a shareholder and can appoint a Director to run the business, or sell it and new management will come in.
It is not 'compensation' as such but a recovery of losses. Before worrying too much you need to find out what your employer's intentions are but I am sure they will inform you all shortly.
Do you actually know if there are any other Directors/Shareholders? The spouse of the business owner may actually be a shareholder and can appoint a Director to run the business, or sell it and new management will come in.
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Here is a useful link:
Redundancy and Insolvency for Employees (PDF)
If you email me more details at [email protected] I can give more accurate advice
Redundancy and Insolvency for Employees (PDF)
If you email me more details at [email protected] I can give more accurate advice
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Jason_Lee said:
You do not qualify for redundancy payment. Your contract with them will become 'frustrated'. This means the contract cannot be performed because the employer is (if the case may be) going into liquidation and therefore staff are redundant.
You will be entitled to the minimum notice contained within your contract of employment if you have one. If you do not have a written contract or a statement of terms and conditions then the statutory notice will apply, which in your case is 1 week. The employer can pay this notice in lieu along with any other entitlements i.e. unspent annual leave.
The above information may be ahead of the situation because a redundancy situation does not always arise but a change of employer/ownership and therefore your rights will come under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).
Additionally, with your 1 year continuous service you are entitled not to be unfairly dismissed (closure of business is a fair reason)
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