Late Payment of Wages

DvB

My place of work always paid our annual salary on a monthly basis, up until a few months ago this was always paid directly into our bank accounts on the 28th of each month, due to the downturn in our industry cashflow has become a serious problem & quite simply the company is struggling to stay afloat.
The thing is our salary first changed from being paid directly into our bank accounts to us being issued a cheque at the end of each month approx 6 months ago, however as the months have progressed we have started receiving our cheques increasingly late (ie 29th, 30th, 31st) & in some cases we'd receive half of our wages on the last day of a month with the other half being given to us a few days/ a week later.

My actual query relates to this month however, we were last paid on May 31st and have yet to receive payment for June (which was due at the end of the month), we have approached the boss and asked when will receive our salaries to which we've been told as soon as cash comes in we'll be paid, with no possible date mentioned or suggested, obviously this is far from satisfactory so i was wondering if there is anything we as employee's can do especially as we have the threat of the company closing hanging over us all?
I'd rather not continue to work if i have little or no prospect of being paid for it, however as i'd be due redundancy if the company does close (albeit the sate minimum) so i'd not want to risk that by quitting etc. Has anyone any suggestions, is there any rights we have dealing specifically with this issue?

Any suggestions would be most appreciated.

spadder

Look at it from your Boss's point of view. He is probably struggling to keep the business open and keep you in a job!
Getting money in is very difficult these days. He is paying you when he has it, albeit a bit late.

If you choose to leave, your probably doing him a favour.

Darragh29

DvB wrote: »

My place of work always paid our annual salary on a monthly basis, up until a few months ago this was always paid directly into our bank accounts on the 28th of each month, due to the downturn in our industry cashflow has become a serious problem & quite simply the company is struggling to stay afloat.
The thing is our salary first changed from being paid directly into our bank accounts to us being issued a cheque at the end of each month approx 6 months ago, however as the months have progressed we have started receiving our cheques increasingly late (ie 29th, 30th, 31st) & in some cases we'd receive half of our wages on the last day of a month with the other half being given to us a few days/ a week later.

My actual query relates to this month however, we were last paid on May 31st and have yet to receive payment for June (which was due at the end of the month), we have approached the boss and asked when will receive our salaries to which we've been told as soon as cash comes in we'll be paid, with no possible date mentioned or suggested, obviously this is far from satisfactory so i was wondering if there is anything we as employee's can do especially as we have the threat of the company closing hanging over us all?
I'd rather not continue to work if i have little or no prospect of being paid for it, however as i'd be due redundancy if the company does close (albeit the sate minimum) so i'd not want to risk that by quitting etc. Has anyone any suggestions, is there any rights we have dealing specifically with this issue?

Any suggestions would be most appreciated.

To be honest OP, when you get to the point where your employer is admitting that salaries can't be paid because the cash isn't there, this is when the wolf is no longer at the door but has actually come past the door and is now growling at you from a foot away.

If the company can't pay salaries then it is highly unlikely that it can pay redundancies, so as far as I know in that situation, they can fill out a form and you can claim minimum statutory redundancy entitlements from the Social Welfare.

What I'd be doing is going to the company and trying to get them to face up to the reality, you can't fault them for trying to keep the ship afloat in the current economic calamity, but they are probably just digging a deeper hole for themselves by dealing with this matter in the way that they are.

I'd suggest having an open meeting with management and your colleagues and say that if they cannot make redundancy payments, then that it is no big deal, employees can claim off the state, but that they will have to make people redundant for this to be able to happen.

It's an awful situation, unfortunately one that is becoming a harsh reality for people up and down the country.

Also, don't forget why this is happening to you, your employer is facing into what is a hopeless situation, your government has allowed inpalpable fear to set in all across the economy which has made people stop spending. Your employer is probably dealing with a bank that is withdrawing credit facilities, this is the same bank that you as a taxpayer is bailing out.

I know this isn't a political discussion but I feel it is important to just touch on the above at the same time... What is causing your employers business to fail is most likely the domestic economic situation, caused by a government devoid of the slightest ability whatsoever to deal with the problems in the Irish economy, and not some wider economic tide I think, contrary to what we are all being led to believe...

leeroybrown

DvB wrote: »

I'd rather not continue to work if i have little or no prospect of being paid for it, however as i'd be due redundancy if the company does close (albeit the sate minimum) so i'd not want to risk that by quitting etc. Has anyone any suggestions, is there any rights we have dealing specifically with this issue?

I wouldn't leave unless you've got another good job lined up. In the event that the business is wound up, unpaid wages will be classed as a preferential creditor and will be paid before the ordinary business creditors. In the event that there is no money to pay them, the state will step in and cover quite a lot of the unpaid wages, holiday pay, statutory notice and statutory redundancy.

As was pointed out above, the most likely scenario in the current climate is that the business can't generate short-term liquidity via the banks. The danger in this situation is that one of the creditors will seek to have the business wound up for non-payment of debt.

If I were you I'd be taking a harder line with the boss in trying to find out what's going on.

LegacyUser

I have been working for nearly a month now and have had no wages (last 3 weeks cheques bounced)...my employers says that we will be paid but cant say when...it is now costing me money to go to work and still not getting a guarantee of payment of wages...if I am made even temporary redundant I will get my full jobseeks allowance but they are not prepared to do this and expect me to keep working and working in credit control I am fully aware that we may not get our wages due to us as all employees have not been paid for the last 3-4 weeks either....I have a mortgage to pay and this is not acceptable or affordable any longer...any advice would be appreciated.