EAT hearing when company is in liquidation

Diabhalta

Hi all, I have a question and I hope some of you might know more about this.

I've been unfairly dismissed last year and I am taking a case against my former employer and will have a hearing at Employments Appeal Tribunal (I simply want him to take responsibity for what he did and that he put me in this unfortunate situation). I will have a hearing some time next year (it really takes forever!). Recently I checked the CRO (company registration office) and the company is in liquidation. Now I really don't know what is going to happen when it comes to that hearing. The company doesn't exist, but obviously the fella resposible for this is still around. Btw. he was quite abusive, threatening me and I can say that he even physically assaulted me in minor way. I also don't know if I should tell my solicitor about this, I expect her to know that the company doesn't exist anymore, but I doubt that she is aware of that. Thanks for any helpful info and recommendations.

Bepolite

Speak to your solicitor, I'm sure the firm will become aware in due course but why wait?

Pat Mustard

Short answer: tell your solicitor.

Diabhalta wrote: »

Recently I checked the CRO (company registration office) and the company is in liquidation. Now I really don't know what is going to happen when it comes to that hearing. The company doesn't exist,

If the company is in liquidation then it has not yet been dissolved. If the company has been dissolved, that's a different story. The position is unclear and you should find out the answer.

Also, take a look at this:

2.4 Principal Duties of Liquidators
The general functions of both voluntary and Court-appointed (official) liquidators are the same i.e. to:
inquire into the company’s affairs;
realise its assets;
pay its debts, and;
distribute any surplus to the members.

And this:

2.9.9 Distribution of Assets –
Ranking of Claims
When the assets of the company have been gathered in, a liquidator’s function is then to distribute them. A liquidator can also make interim distributions when approved, usually for the purposes of paying costs and expenses. Naturally, where a company is insolvent, all bodies of creditors will not be paid in full. A secured creditor who holds a fixed charge or mortgage does not have to bring his or her claim in the liquidation.

He or she is entitled to realise the security outside the liquidation. The priority for
the distribution of assets is generally:
i. costs and expenses of the liquidation;
ii. preferential creditors;
iii. floating charges;
iv. unsecured creditors;
v. members of the company.
Costs and expenses of the liquidation include matters such as the liquidator’s remuneration, the expenses of the Committee of Inspection, the costs payable to the liquidator’s solicitor, the necessary disbursements of the liquidator, the costs of the initial Court application, if any, to wind up the company and the costs and expenses of those involved in the making of the statement of affairs.
Preferential creditors include taxes owed to the RevenueCommissioners and various payments owed to employees.

You could ask your solicitor about notifying the liquidator of your claim.

Diabhalta

Thanks, that is what I thought... but there is more...

my solicitor said, that there is a very small chance (even if I win some compensation at EAT) to get something, as he "probably has no money". First comes Revenue, then employees/suppliers (and I am not an employee, because ha sacked me). As far as I know if company is in liquidation and isn't able to pay it's debts then some government institution is taking over and dealing with creditors. I don't know if this is true, this is what i heard. Also she gave me an option to withdraw the case, or continue on my own. She said that the bill for her services is 5000e so far :eek: ... Considering that I AM THE ONE WHO TOLD HER THAT COMPANY IS IN LIQUIDATION the price for her services would be 500e and not even a cent more. Asking 5 grand for sending alltogether four letters, and spending couple of hours putting together some paperwork is really insane.

Fred Swanson

This post has been deleted.

Diabhalta

Fred Swanson wrote: »

This post has been deleted.

No, I didn't (as far as I remember). I only signed a declaration form that says they can act on my behalf (with EAT/former employer). She told me recently when we had a meeting that the fee per hour is 270e. There was a different solicitor dealing with my case in the beginning and she didn't say anything like that. If she would, I'm out of there in a split second. To be honest, the work they did for me isn't worth any number with four figures in my opinion. Me telling her that the company is in liquidation just shows that she isn't really doing a good job.

Diabhalta

Ok, now the things have moved a bit.

I got rid of the solicitor - Useless.

There was a hearing at EAT in early January and now I got the letter with the decision and compensation figures.

What is going to happen now? I went to the liquidator and told them that I have a claim. They will contact me next week.

If the liquidator won't give me anything (because there are no assets) I will have to go to the Insolvency fund (Insolvency Payments Scheme).


http://www.welfare.ie/en/Pages/Employee-Guide-to-the-Insolvency-Payments-Scheme.aspx

In the link above they say:

Are there any limits to the payments that may be made under the Scheme?

Some limitations and conditions apply to payments made under the Scheme. All entitlements based on pay are limited to a maximum weekly rate which is revised periodically. The current limit is €600 per week. There is also a limit of eight weeks for arrears of pay, sick pay, holiday pay and pay in lieu of statutory notice. In most cases, the Scheme covers entitlements relating to the period of eighteen months prior to the date of the insolvency of the employer or the termination of employment. In the case of an award made to an employee - for example, an unfair dismissal award – the eighteen-month period applies to the date of the award. An award may also have a date that is later than the date of insolvency.

---

Date of insolvency is last year arount this time and I got awarded now. So from now minus 18 months there is 6 months of payments? I don't understand.

Diabhalta

another info from here:

http://www.reddycharlton.ie/news-and-publications/single-view/article/employers-insolvency-q-a/?cHash=2f52978594cd20fc5d5fe5b53eb83d8f

7. How are employees’ debts treated in the distribution of the employer’s assets?

Bankruptcy and company legislation give preferential creditor status to employees for certain debts in the distribution of the assets of the company or the bankrupt. This means that specified employee debts are given priority in the distribution of assets after the payment of the secured creditors and the liquidator’s/official assignee’s remuneration and expenses. However preferential creditor status only offers protection to the employee where there are adequate assets to discharge the debts due.

Where an employee has received a payment in respect of a debt from the Social Insurance Fund that employees rights and remedies in respect of that debt are transferred to the Minister for Enterprise, Trade and Innovation. Accordingly the Minister becomes a preferential creditor in the priorities of creditors. Furthermore the debt due to the Minister shall be paid in priority to any unsatisfied claim of the employee.

Diabhalta

Anybody?