Sudden insolvent redundancy - where do I stand?

ergonomics · 11 Jun 2011 at 12:22

Hi guys. I've been at a Soho post production company since December 1st and recently received an unofficial promotion (2 months ago) which turned into an official contract promotion last Monday.

Fast forward to Friday, we are all told there is an urgent staff meeting we must attend in 15 minutes. On our way there, our swipe cards stop working to let us in/out of the building, and groups of 'suits' come by and tell us we all need to leave. We are informed at the meeting they are a consultancy firm hired by our parent company (who can no longer support us) and are putting us into insolvency. As of that time, we are all redundant and have an hour to get our personal belongins or arrange a meeting next week to come back and retrieve all our bigger belongins we can't take with us.

As was explained, we must get paid for our 8 days of work in June from the government (and they supplied forms to fill out for this). And apparently we are entitled to a week's extra pay due to the zero notice we were given.

Is that it? A lot of the staff on lower salaries like myself (~13.5k) have places to pay rent for and food to live on.. but we have to wait 4-6 weeks to get our June pay from the government.. can't believe that's allowed!

To top it off, i have to complete jury service in 2 weeks and had all my forms ready for my 'loss of earnings certificate' with proof from my company.. which now obviously doesn't exist. Is my best bet to sign on to JSA and claim that throughout jury service??

Kemik · 11 Jun 2011 at 12:37

The government will pay for unpaid earnings + notice period per your contract assuming the company doesn't have any funds (employees are top of the pile though). You won't receive statutory redundancy as you haven't been there long enough.

Andelusion · 11 Jun 2011 at 12:42

Awful situation to be in dude

Hope you sort things out.

Jokester · 11 Jun 2011 at 12:46

I would actually look to get out of jury service, as it's going to cause you undue financial hardship as it'll cause problems for you looking for a new job.

dowie · 11 Jun 2011 at 12:53

Jokester said:
I would actually look to get out of jury service, as it's going to cause you undue financial hardship as it'll cause problems for you looking for a new job.

This - I'm pretty sure you can arrange to delay the jury service given your sudden change in circumstances.

Vonhelmet · 11 Jun 2011 at 12:56

You stand in the dole queue :/

ergonomics · 11 Jun 2011 at 13:03

Jokester said:
I would actually look to get out of jury service, as it's going to cause you undue financial hardship as it'll cause problems for you looking for a new job.

I thought this and wondered if it was possible. But on the flip side, if i put it back 6 months, will i look like a less attractive employee when i am searching for jobs if i'm known to have jury service in half a year's time? Would it be better to get it out of the way and sign on to JSA?

Randomface74 · 11 Jun 2011 at 13:05

Start looking for a job, you can get out of jury service.

You can argue about the redundancy later, right now you need income.

A2Z · 11 Jun 2011 at 13:29

Indeed, forget the jury service and look for a job.

Amleto · 11 Jun 2011 at 13:53

ergonomics said:
I thought this and wondered if it was possible. But on the flip side, if i put it back 6 months, will i look like a less attractive employee when i am searching for jobs if i'm known to have jury service in half a year's time? Would it be better to get it out of the way and sign on to JSA?

seriously, what employer has ever asked about jury service!?

DaveF · 11 Jun 2011 at 14:04

ergonomics said:
Hi guys. I've been at a Soho post production company since December 1st and recently received an unofficial promotion (2 months ago) which turned into an official contract promotion last Monday.

Fast forward to Friday, we are all told there is an urgent staff meeting we must attend in 15 minutes.

Pepper, I take it?

To be honest, the important thing here is to get your CV out and get looking. It's probably not the best time to be made redundant, but it'll be easiest while you're still very recently employed in the industry.

FWIW, I spent about 3 years trying to get my first job in the industry, it closed down about 9 months later and I was absolutely gutted, thinking I'd be looking that long again. I got a job within 2-3 days of searching (and I didn't really have any contacts). So things may not be as bad as you fear.

Scam · 11 Jun 2011 at 14:27

DaveF said:
Pepper, I take it?

Beat me to it, how news travels in Soho..

ergonomics, really sorry to hear. Coming from someone else lower down in the industry I can't imagine how awful that must be. From what I knew about Pepper is that they already went bust once (or even twice?) before. They just changed the company name and started over. What a terrible way to run a business. I've made note to never to be tempted to work for them!

ergonomics, I can't give any advice on the redundancy pay but if you work in Soho you must know a lot of the other companies off the top of your head. I'd print off 50 copies of your CV and start handing them out Monday morning. Be a bit sneaky though. I'd be inclined to aim towards a runner role as you're much more likely to be able to pick one up. And you'd be able to start immediately. If they knew you were above runner-level they might be less inclined to give you a job because they might think you'd leave as soon as you find anything better (which you should, obviously!).

ergonomics · 11 Jun 2011 at 15:22

Oh news really does travel quickly in soho

Yep it was Pepper. I was based at Noel St (the audio building). Pepper have gone into administration multiple times (3+) in the last few years and companies keep buying them, trading under different names etc. and the company has never really been run by anyone coherent as all money-making ideas are veto'd and they expect to just purchase Pepper and watch the ££ roll in... big mistake!

I've been in touch with contacts at De Lane Lea, Lipsync and Molinaire... all tell me the same thing. They aren't looking for anyone at the moment because they are pretty quiet on the business front (although with our client base having to go elsewhere, they should pick up some extra work pretty quickly!).

I'll be updating my CV this weekend and handing it around all audio post houses.. but I'd rather not start as a runner again if i'm honest. It's a step back, and when looking at my CV and seeing my position at Pepper, it just won't look right if i'm applying for a runner role, or will it? Plus it's another kick in the goolies having to start fresh! But that's pretty much my only option right :/?

Nelly · 11 Jun 2011 at 15:35

About 5 year ago, I got compensated through the Redundancy Payments Office and HM Revenue & Customs (HMRC) because of insolvency.

I can't remember the figure - around 2K, better than nothing, speak to your local Citizen’s Advice Bureau.

What you can claim
You can claim for all your outstanding pay from the insolvency practitioner. There is no guarantee that the full amount you are owed will be paid as this depends on whether enough funds are raised from the sale of your employer’s assets.
Some debts, including holiday pay and wages, will be 'preferential debt' when your employer’s assets are shared out. This means they must be paid before certain other debts.
As full payment cannot be guaranteed, there are special arrangements for employees to claim the basic minimum of debts owed to them from the National Insurance Fund. These claims are:
redundancy
wages - up to a maximum of eight weeks
holiday pay - up to a maximum of six weeks
compensatory notice pay - one week after one calendar month's service rising to one week per year of service up to a maximum of 12 weeks (new earnings will be taken into account)
There is a limit of £380 a week (£400 a week from 1 February 2011) on the amount you can claim for your weekly pay

Source

More Info: http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_178525

Pigeon · 11 Jun 2011 at 23:37

Sounds like a rubbish situation to be in, I also lost my job with no notice a few years ago as the company entered administration fortunately my pay was up to date however it was an effort of putting the claim in for the redundancy money from the company, then a few months later going to the tribunal to enforce it then finally getting a payment from a government fund.

What I would be doing is making sure of my immediate money needs and calling the Jobcentre to put a claim in and make sure that the wheels are in motion to get some money coming in. They can only start your claim from the day you call them and pay you from 3 days after that!

From direct.gov.uk -Financial support and benefits (like Jobseeker's Allowance) are unaffected for the first eight weeks while on jury service. But of course tell the Jobcentre you are doing it so they can plan or remove your appointments. Possibly what would be better is to defer the jury service and do more job searching if you can?.

ergonomics · 12 Jun 2011 at 12:26

Nelly said:
About 5 year ago, I got compensated through the Redundancy Payments Office and HM Revenue & Customs (HMRC) because of insolvency.

I can't remember the figure - around 2K, better than nothing, speak to your local Citizen’s Advice Bureau.Source

More Info: http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_178525

Cheers for the info! Looks like i'm entitled to my 8 days of work in June, 5.3 days holiday pay ive accrued and another 5 days for having zero notice. Will be filling in the forms today!

Pigeon said:
What I would be doing is making sure of my immediate money needs and calling the Jobcentre to put a claim in and make sure that the wheels are in motion to get some money coming in. They can only start your claim from the day you call them and pay you from 3 days after that!

From direct.gov.uk -Financial support and benefits (like Jobseeker's Allowance) are unaffected for the first eight weeks while on jury service. But of course tell the Jobcentre you are doing it so they can plan or remove your appointments. Possibly what would be better is to defer the jury service and do more job searching if you can?.

Looks like i'm heading to the job centre tomorrow at some time. After CV bombing other companies in Soho!

What makes it worse.. my dad is fighting his 2nd round of cancer and starting treatment at the end of June til August, and i had planned to go out to Chicago in August for 2 weeks to see him for his recovery - even booked the time off and arranged it all! But now it's a tough one as new employees won't be over the moon with me having already arranged a holiday

coupled with jury service, this came at such a bad time :mad:

Mercenary Keyboard Warrior · 12 Jun 2011 at 19:24

You can sign up for the job centre online actually.
Then I think they call you or write to you to arrange to go in.
Its counted from the time you sign up, so why not do it tonight.

Pawnless Endgame · 12 Jun 2011 at 20:21

OP, I know how you feel. This happened to me a couple of years ago. Small firm that sold special needs equipment. We were given 24 hours notice that we were all going to get the boot. We have to go though the 'Insolvency Company' (basically HMRC) to get our notice period pay and redundancy pay, for those who were in the company for 2+ years. The only difference between my situation and yours is that I didn't have the untimely jury service. Like others have already said, give them a ring to see if they'll postpone it.

ergonomics · 13 Jun 2011 at 00:12

robskinner said:
You can sign up for the job centre online actually.
Then I think they call you or write to you to arrange to go in.
Its counted from the time you sign up, so why not do it tonight.

Sadly you can't apply online if i had employment after May 12th 2011.. which i have as it's only just ended. Apparently i need to call them up, which i can't do tomorrow til the Virgin Media engineer comes because our phone lines are down and an 0800 costs from a mobile. FML

Monserrat said:
OP, I know how you feel. This happened to me a couple of years ago. Small firm that sold special needs equipment. We were given 24 hours notice that we were all going to get the boot. We have to go though the 'Insolvency Company' (basically HMRC) to get our notice period pay and redundancy pay, for those who were in the company for 2+ years. The only difference between my situation and yours is that I didn't have the untimely jury service. Like others have already said, give them a ring to see if they'll postpone it.

Sounds like the same situation! Sorry for suffering the same thing bud! I'll call the courts tomorrow and see what they say.. if my job hunt this week doesn't go to well, it might not be a bad thing to get jury service out of the way.. but time will tell!