Not getting paid - what do I do?

danswan

danswan

danswan

Associate
Joined
6 Feb 2004
Posts
1,391
Location
Toon
Here's a nice sob story, thoughts and advice please :)

I left a steady if unspectacular job last November 2012 to start work with a company which was due to launch a new piece of software in January 2013. It was a big risk but there was the chance for a big step forward in my career, as well as offering lots of flexibility in working hours which was really appealing to me - I could spend a lot more time with the kids and it gave my wife the chance to push her career forward a bit as she'd been tied up with the kids pretty much full time up to then. So after much deliberation I took the plunge.

The software was being developed by a guy in the USA and soon after I started it became clear that this was nowhere near ready and I expressed my doubts that it would ever be. As time went on I continued to express my concern that this was never going to get finished, and sure enough finally the penny dropped that this developer was struggling badly with the project. Once we started pushing him he eventually quit due to 'ill health' in May.

As expected, the work he's done so far is useless so we've gathered some quotes to get this done properly by a reputable company in the UK and once funding is in place for this we will be going again, with a view to launching in Q2 2014.

The company is basically just me and my boss. He's a really good bloke, albeit somewhat naive, and he's been doing all he can to keep paying my salary. Although it was pretty obvious to me from the first day I started that this US developer was not going to deliver, he believed the constant "It'll be ready in 2 weeks" etc etc that he was being told, and the investment he already had in place has dwindled to nothing.

Last month he was unable to pay me, but he was awaiting a further investment which would keep us going for the medium term. This has yet to materialise, and we are now approaching the second month without pay, so I appreciate I really need to get another job, and I'm firing off applications every day. I've since discovered that my boss had to borrow money to pay my previous month's salary and he's living hand-to-mouth himself at the moment.

Apparently this further funding has been agreed, and money is 'on it's way' but I'm obviously dubious after what has happened up to now. I know he's not just making this up, I met with a representative of the group that are investing and have spoken to him on a few occasions since. I'm party to the emails that are going back and forth and all the noises are that the money is imminent, but this has been the case for over a month now.

The problem I have is that the project, if we ever get it going, is an excellent one and if it is done correctly (which I feel it will be now I'm involved) will be extremely lucrative. As I've been on board from a very early stage I'll have a very good role within the business, which I'm never going to get elsewhere.

So I'm not sure what to do - I don't want to quit acrimoniously and if I do I will be missing out on what is potentially a great step forward in my career, but I can't keep waiting for my wages, I have a family to feed, and I need my salary from last month to pay back money I've borrowed to keep going.

What do I do?
 
How flexible is the boss? its coming upto the time of year when people will be hiring christmas temps so depending on how much your prepared to commit and how flexible he can be with regards to the work you need to do i.e. stuff you can do at home, etc. then it could be a short term solution to take on some temporary seasonal work alongside what your doing?


EDIT: Also depending on the skillset and equipment, etc. you and your boss have it might be worth looking around for short term contract work that the company can apply its capabilities to to make ends meet.
 
Last edited:
Have you got another job lined up then? Doesn't sound like it so I'd crack on in the meantime just in case this money does come through, but keep looking. Your boss reminds me of the free pie chart guy from the David Thorne book.
 
If as you say the project is likely to earn you a lot of money it may be worth sticking it out for another couple of months just to see it through?
 
hes obviously putting everything on the line, and by taking loans just to pay you hes taking big risks, but knows he needs you on board... its a tough situation. maybe speak with your boss, and mention you need to find some sort of income. can you not arange a way to make money. its sounds like you're pretty clued up, can you not create a side project doing temp work just to keep you afloat, or elsewise look for a temp job until this money pulls through and you can continue?
sounds like it could kick off, but needs investment. is there no legal help the guy can get in terms of grants for buisnesses?
 
Get a job, sounds like the business has already failed.

Ask yourself this question... If you were not in the company and were not invested already would you put your own money into this venture?
 
Have you actually spoken to your boss about this? Presumably with no funding the UK company that will complete the development isn't doing anything, and therefore neither are you or your boss? I can't see he should have any problem with you taking some temp work to make ends meet making it clear you're still committed to the project and will return when things get going again. In fact he'd likely be relieved he doesn't have to find your salary and can still count on you to return when things get going. I can't see why this approach should mean you lose this opportunity if the project really does get funding.
 
What are the terms of the "new money"? Has your boss sold all/most of the rights to future profits from the project in order to secure these funds.

There is no point you hanging around if the other investors have already bought what you see as your payday with their cash injection.
 
Seeing as you had to borrow money to cover last month's lack of payment it looks like push has come to shove. If you had some money to tide you over I might have said stick it out but I'd feel iffy recommending that when you'd be getting into debt doing so.

Perhaps make it very clear to the boss that money needs to materialise very soon otherwise you simply have no choice but to leave. By the sounds of it you're pretty important to this succeeding. This is all assuming the money coming in doesn't impact upon the benefits of sticking it out within a company at the early stages (i.e. it isn't screwing you over).
 
Really hard one. Only you know really how close this is to launch and how much money you stand to make. Could you really put yourself out for a few months and work weekends and evenings elsewhere for money and hope things go ok with the company?
 
Claim JSA for the minute OP so you've got some income, rent benefit CTAX bfit will cut off your bills/pressure.

Stick it out couple months if you can on JSA till he can pay you and keep your eyes peeled and check progress closely. Smash any work you need to do on the project so you don't fail on your side of it. If it's no cigar then you'll have to move on. Main thing is though keep an eye on the business and follow your gut OP. Nobody here can really give you advice it is your life your risk, losing a few months pay cheques for a awesome job / idea is worth it imo than to go back to boring 9-5 with some dull colleagues. All greatest start-up business guys at one point in their lives grafted for nothing. That's why they say if you want to be a super success you need to do what you do and be not willing to get paid. How do I know this? A good friend of mine during his "tough times" was working 12hrs day 6 days week and not being paid a penny and he did that for months and months living on a pittance, people giving him gripe etc but he'll be one laughing soon tbh from things I've now seen.

Good luck.
 
Last edited:
Mr-White said:
Can you contract for a few months to get your self some money and give them time to get the funding ?

MW
Click to expand...

What this dude says tbh

If no ones earning any money at the mo until the program is developed there's no point anyone being there. May as well grab a short term contract and work on this on the side. Your boss will understand - you will be doing anything extra for free :P

Worst case scenario you put in a couple more months and still not getting paid so time is doubley wasted.
 
Sounds like a bit of an awkward situation. You either wait it out and believe what he says, in which case it might come good and you finally get paid.

Otherwise, you could be waiting forever until the whole business collapses and you never get paid.

You could get lawyers involved, but if the business has to go bankrupt you still aren't necessarily going to get paid and have burnt all your bridges if it ever does finally start making a good profit.

Only you know where you really think the business is going. If you think it has some chance, I'd be looking for work elsewhere and having it on the sideline. If it is currently your full time job, I'd explain to the boss that you can no longer commit to working full time to a business that can't pay your wages, however you will remain on board giving some time to what they may need.
 
Either get some temp work or sign on. Your boss will understand you doing either of these. Sounds like a good opportunity but you don't wanna get taken for a ride, intentionally or otherwise. Make sure you get previous month's pay and if money comes through maybe ask if you could be paid in advance rather than arrears once the company is flush again, so that you know you won't be out of pocket.

From what you've said, I reckon you'll get some more investment, but the time frame of that and also whether it will be enough to go live is another matter.
 
danswan said:
The problem I have is that the project, if we ever get it going, is an excellent one and if it is done correctly (which I feel it will be now I'm involved) will be extremely lucrative. As I've been on board from a very early stage I'll have a very good role within the business, which I'm never going to get elsewhere.
Click to expand...

What do you actually add to it if it was being developed by some other guy in the USA? Anyone can have a good idea and you don't have anything close to a finished product yet... How do you know for sure that you're in a good position - its just you and your boss? Are you assuming that means if you expand then you'll do really well or do you have something in writing giving you a % of future revenue etc..? Can he replace you in future or bring others in above you? Did your boss let you know in advance about the salary issue or did you find out the month you didn't get paid? It seems pretty risky tbh... and you'd surely have to have something other just than the fact it seems like a really good product/idea in order to stick around.
 
Suggest that you both get part time or other jobs and work on the project in spare time with a 50% cut of profits or something in exchange for no pay now. If you are sure reasonably sure it will work.
 
You must log in or register to reply here.
Back
Top Bottom