No Money To Pay Wages?

I beleive

Ok so here's the situation:

1) We are a 100% goverment grant funded LTD company.
2) Our grant for 2010 has been cleared
3) The money has not yet been released.
4) If not in account by next week we cannot pay wages

What options are open to staff?

We obviously want to pay them. When the money comes in we will back date all the wages. But if i tell staff next thursday there is no money to pay them

Can they just walk off the Job? I presume so

If they do and only return when the grant is received do you back date their pay even if they have not worked.

How long do you let/ask staff to attend for work (obviously at a cost to them) without being able to pay them?

As i said in longterm (2-3 weeks) this will be sorted for the year but need to get a plan in place for next week

Thanks

BennyBlanko

Hi,

Whilst I sympatise with your quandry,I'm not sure you should be running a state funded company if you can't handle this situation or scenario.

Did you used to run FAS?

I beleive

BennyBlanko wrote: »

Hi,

Whilst I sympatise with your quandry,I'm not sure you should be running a state funded company if you can't handle this situation or scenario.

Did you used to run FAS?

Thats a hugly insightful comment!!! You obviously feel you know the answer yet are not will to give it. But you would rather jump on the old public-v-private bandwagon

Have you any idea how may small companies like this are in existence througout the country?

How they run on a ridiculously small budget with a voluntary board of management who get no expenses or payment but do the work because they see the benfit it bring to their community? Who provide the service at a fraction of the cost compared to the goverment doing it?

Or the staff who are not public employees or receive anywhere near their wages/benefits/expences?

So next time unless you have something positive to contribute please keep your useless comments to yourself

katkin

If you have grant approval will your bank not give you a loan if you produce the letter of approval? Or give ye an overdraft. Or credit union or something. There is also a group called Clann Credo (google them) who provided bridgeing finance to community groups but don't know if they'd be any good as you seem to need the money asap.

hobochris

I beleive wrote: »

So next time unless you have something positive to contribute please keep your simpleton comments to yourself

Your on a public forum there chief :rolleyes:

Also personal abuse is against the charter.

I beleive

hobochris wrote: »

Your on a public forum there chief :rolleyes:

Also personal abuse is against the charter.

Apologies edited the post. It was fairly annoying though but your right

I beleive

katkin wrote: »

If you have grant approval will your bank not give you a loan if you produce the letter of approval? Or give ye an overdraft. Or credit union or something. There is also a group called Clann Credo (google them) who provided bridgeing finance to community groups but don't know if they'd be any good as you seem to need the money asap.

Hey Katkin,

Thanks but the credit union/ bank require the directors to guarentee loans and nobody is in a position to do that.

I have emailed Clann Credo and am awaiting a response.

Thanks

BennyBlanko

I beleive wrote: »

Apologies edited the post. It was fairly annoying though but your right

You need to focus on the matter in hand - and not get all emotive.
It sound to me you need to place all staff you can't pay on protective notice, TODAY. Not Tomorrow, Today.
This will allow you to communicate to them the issue you have on hand the severity of it.
It will also allow you to inform the relevent gov dept with whom are are waiting on funding from...and use it to move funding to you quicker hopefully.
Also, contact you local gov minister, local Td's etc to lobby for you and the people on notice.
In tandem with all of the above, send out a press relaease to local, regional and nation media of the same.

See, I'm not a simpleton after all....;-)

tbh

BennyBlanko wrote: »

You need to focus on the matter in hand - and not get all emotive.

in fairness, that's exactly what he was trying to do before you started passing comment on his situation. What you said was hardly helpful and probably made a fraught situation worse.

/my 2c

BennyBlanko

tbh wrote: »

/my 2c

ok, but as a taxpayer I'd like to see more competent managers running state funded companys who know what to do and not ask for advice on internet forums on what to do with peoples livlihoods. Thats all.
I'm allowed to this opinion, no?.
I offered my advice wheather its heeded or not we may never know.
This is my final word on this thread and matter.:rolleyes:

I beleive

Would putting somebody on protective notice be appropriate though?

The reason I ask is that we have no intention of laying off staff nor do we have any intention of closing down it's only a cash flow problem that will remedy itself in a number of weeks?

You can rest assured that your tax money is not being wasted here. I never said i was a manager. I am simply a board member and this is not my field of expertise and i was just looking for some info.

I am pretty confident that the manger has the situation in hand

shoutman

Mod note: Lads keep the thread on topic please, no personal abuse, and no unhelpful comments please.

I don't want to have to get out the ban stick. I still haven't used mine and really don't want to.

Shayman

Get on to your TD or whoever your contact is that provides the grant and get them to get their ass in gear.

Oh, and count yourself lucky that you have a state sponsored tank of cash on the way and spare a thought for us provate sector employers who don't have that luxury and still have to pay everything...

TheCostumeShop.ie: Ronan

In my opinion you have to pay the staff no matter what, if the money is coming in get the loan. Theres no reason the banks shouldnt lend to you as its zero risk, just ask around. If they insist on a guarantor ask the department head of whoever is funding your business to put their signature or department stamp on the papers. If they wont then you should be very worried.

yop

Currently in that situation, except my salary is reliant on sales and "potential investor". We have not been offered any notice and the suggestion to work a 3 day week and go on dole for the rest was not taken too well.

It depends on your staff really I suppose, but I have been through this as an employee for the last 12+ months. Expect some staff to walk.

racso1975

you should be fine a lot of community projects got their funding today

stepbar

I beleive wrote: »

Hey Katkin,

Thanks but the credit union/ bank require the directors to guarentee loans and nobody is in a position to do that.

I have emailed Clann Credo and am awaiting a response.

Thanks

The solution is a temp overdraft. I couldn't see why this couldn't be done expecially considering the money is on it's way. Surely a letter can be provided to prove that the money is there but not yet issued. Going forward you may have to start looking at your costs and putting a contingency fund in place for suitations like this or even perhaps a small overdraft. Micro managing the finances is key especially in these times.