Made 'redundant' and need some legal advice.

[jelly baby]

Hello all,
I hope someone may be able to give me some advice about appealind a 'redundancy', and also possible unfair dismissal.

We are a small firm ( five employees) manufacturing and repairing upholstery. We went into work on Monday 16th May, and were told that the company was broke and was ceasing to be. He (the owner) could not pay our redundancy ( I have worked there for a tad over five years) and said we would be able to make a claim from the insolvency service, although at this time the company is not insolvent, he said he owes tax,vat etc and they will make him insolvent very soon!!!

This is where it gets difficult.... I understood that at the date of redundancy, if he is not officially insolvent, he is responsible for any redundancy payments. Is this so?

Also he had two jobs in the workshop which he said he may not be able to honour and would probably have to return them to the customer, however, one of the upholsterers was kept on in a self employed capacity to do this work. I assumed I would be offered the job of sewing the cushions etc, as I was the only machinist employed there, and indeed, made clear that I would be available.
I then found out that he had brought in casual labour to do this, and he has taken on a further three jobs which he has offered to her.
Does this make me unfairly dismissed?
Can someone advise me where I stand legally on both counts and also clarify the redundancy payment situation?
Thanks
Carole

[factor-fiction]

Have you actually beeen made redundant or given written notice of redundancy?

[Ellipsis]

Have you been given a letter of dismissal? If so, what did it state with regards to:

a) the reason for dismissal
b) your notice period
c) the date on which the contract of employment will terminate
d) how your redundancy pay was calculated.

[jelly baby]

1..Reason for dismissal - no money left in company
2..Notice period - Told to come in at 9.30am Mon 16th, we were told there was no more company!
3..Contract terminated approx 10am Mon 16th
4..I am entitled to 7.5 weeks redundancy pay, he reckons he can't pay it as the company is insolvent. It is not officially insolvent, he said he owes tax etc so the IR will file for insolvency

[jelly baby]

Factor 30,,, After badgering for written notice he eventually came up with a letter that you would have to see to believe!!! It does, however, state that I am redundant.

[albaqwerty]

There is a government scheme which pays redundancy (at least there used to be) I'll have a search but will probably be beaten to it

[jelly baby]

Albaqwerty... ACAS inform me that as he is not officially insolvent at the time we were maded redundant, then he is responsible for redundancy payments. However, if as he says, the co. has no money would the gov scheme pay out.

[tamborine]

The IR wont let him release monies if they are probing his accounts.

[Ellipsis]

Given everything you have posted, jelly baby, I think you definitely have some kind of case.

I would contact a local solicitor with specialists in employment law, explain the situation to them and see what they advise.

[buildersmate]

Redundancy is one of the fair reasons for dismissal, but not the way he has done it. I cannot see how how he not in breach of company law if the company is continuing to trade when insolvent. It is possible to go into voluntary liquidation, or it is possible for a creditor to force insolvency, but it is not possible to say the business will be insolvent soon so the staff are being declared redundant now. And ACAS obvious know their stuff and merely confirmed this to you.
At the end of the day, I am pretty sure you will get your money eventually, but it is probably going to take a bit of time. On the evidence you have provided, you have been unfairly dismissed, but there is little point in taking an insolvent business to Employment Tribunal to prove the point and win, because the business won't have the money to pay anyway (unless you don't believe him).
I would write the company a very short letter along the lines of:
Dear Boss, on 16th May you told me that my job was terminated without notice, on the grounds that the company was insolvent. I note that the business appears to be still trading today, some 2 weeks later, and would be appear to be insolvent as you indicated on 16th May.
I further note that you have employed a new person in the business who would seem to be undertaking the work that I was employed to do prior to the 16th May. It would seem that my role as xyz is therefore not redundant.
I would be grateful if we could meet as soon as possible to enable you to fully explain this situation to me.
Then see what happens.
I therefore request that

[buildersmate]

There's a missing 'not' in the third line of the draft letter to the boss.

[Ellipsis]

By the way, jelly baby, the money you are owed is your notice period (+/- your holiday pay) and your redundancy. It's ridiculous that you were fired when there was work to be done - you could have done that work at no extra charge to the business while working your notice period. Instead, somebody else was paid to do it!

See http://www.direct.gov...tribunals/DG_10028122 and work your way through all of the suggestions there.

You'll see under "Before making a claim" at that link that it suggests talking to your employer. buildersmate's procedure above is good for kicking this off, but you need to act quickly. If it is going to end at a tribunal, you have three months to make your claim. You are already two weeks in ...

[jelly baby]

Thank you all for your replies. I am going to send a letter to the effect the I can't be redundant if there is work available and therefore must assume I was unfairly dismissed.
Ta
Carole