company is about to go... pay issue

afatbollix

I think the company I work is about to go bust...

This is my first time this has happened to me and was just wondering about Pay...

I haven’t been working with them for 2 years so I won’t get reduncy but will I get the wages im owed for working up until they close? They forgot to pay the over time I did in may so I need to get that also... could there be a situation where they cant afford to pay me...

Would the staff be first in line before the banks come in or are we paddy last?

Cheers for any advice...

leeroybrown

Firstly, I'll say that what's below isn't legal advice for you. It's information that you should be able to confirm (or refute) elsewhere. My real advice would be to make sure that you register your claim with the liquidator as soon as possible if one is brought in.

Should the company go into liquidation unpaid wages would be treated as a 'preferential creditor' so you'd be ahead of other ordinary unsecured creditors in the line. As far as I remember there are certain limits (time and amount) regarding how much wages is treated as such. Your accrued holiday pay would also be included. You might also be able to claim statutory minimum notice in the same way. If there isn't sufficient money left to pay you these amounts then there's another mechanism whereby you can make a claim on the insolvency payments scheme via the liquidator to cover the outstanding amount.

NOTE: If your job involves retroactively claiming expenses that you've payed from your own pocket be *very* careful as these are treated as an 'unsecured creditor'. Some people have lost an awful lot of money in this way when a business is wound up.

Newaglish

If you're owed wages when the company goes into liquidation, you can claim for the following from the Department of Enterprise, Trade & Employment (DETE):

Arrears of wages up to €600 gross per week to a maximum of 8 weeks in total.

Arrears of wages includes: unpaid wages, overtime, time in lieu, bonus and commission.

Arrears of holiday pay of up to €600 gross per week to a maximum of (I'm fairly sure) 40 days.

Pay in lieu of minimum notice, being the statutory minimum notice, not whatever minimum notice is in your contract. I'm assuming you have greater than 13 weeks' and less than 2 years' service which entitles you to one week at your gross weekly wage. This amount is paid tax-free to you.

In practice, the administrator (ie. liquidator/receiver) must make the claim on your behalf and approx. 3 months later will receive a cheque from the DETE. The administrator then deducts whatever tax is necessary and pays it over.

If your weekly wage is over €600, the excess ranks as a preferential creditor. This means that you will be paid after secured bank loans and in some cases, the revenue. You're paid before the unsecured creditors.

NB - There's a lot of complicated extra bits and pieces involved but I just put in the basics there!

Edit - and as mentioned above, any expenses owed to you will be ranked as an unsecured creditor.

messygirl

hiya

just quick query regarding DETE payments,

lodged claim with liquidator end of February and dete site says it is processing March and april claims. Contacted liquidator to get a time estimate and he said he wont know and its just a case of waiting. Anyone know current waiting times? cant get any answers out of anyone...