If my company goes bust but then opens up with a different name what are my rights.?

Question

Would I get redudnancy,

Answer 1

I know this reply is lengthy but please take the time to read it.

Unfortunately no one here can say yes or no without knowing all the facts. It depends on several things.

1) If your employment was terminated and you were not re-employed by the 'new' company and provided you have worked for the old company for at least 2 years you may be entitled to a Redundancy Payment.

2) If your employment was terminated and and you were re-employed on a new contract with the new company, you may be entitled to a redundancy payment.

3) If you continued your employment with the new company and that employment is the same as it was with the old one with just the name of the company changing. You probably have 'Continuity of Employment'. This means that the time you worked for the old company continues with the new one as if you had never left. If the new company closes and you are discharged, the time you spent with both the old and new company should count toward any redundancy entitlement.

4) All these factors depend on the length of time you have been employed by the company and your age.

Although I am not saying this is the case, I have known companies who have dismissed their staff on the grounds of redundancy and started up again under a new name doing exactly the same thing in order to try to save themselves the expense of paying redundancy to their former employees. It is a disgusting thing to do and very often they find that they still have to pay.

I know it seems a little complicated, which it can be, but I would advise you to contact either:

Your local Citizens Advice Bureau (CAB) who are a free and highly confidential service. They are expert in dealing with this kind of problem.

The Advisory, Conciliation and Arbitration Service (ACAS) which is a free and independent body set up by the Government to help and advise people on their employment rights and responsibilities.

The website for ACAS is:

http://www.acas.org.uk/

I do not think ACAS accept emails so you may have to write or phone them.

The Industrial Tribunals deal with claims for redundancy payments. I have worked for them and know this is the case, but I would advise you to contact the CAB and/or ACAS first.

I hope this has been of help and good luck.

Poseidon

Addendum: If it is found that you do qualify for a redundancy payment but your old employer has no money to pay it. I believe the Government will it. However, if the old company has enough money to restart then I find it strange that they cannot pay their ex employees what they are entitled to.

Answer 2

You are entitled to but will probably not receive redundancy (or not the full amount) if your company goes bust. Employees are almost always quite far down the list of creditors (people the company owes money to), and by definition if the company goes bust it's because it doesn't have enough money to pay all of its creditors. Occasionally employees don't even get paid all of their wages, if they are paid in arrears. Of course sometimes the company has substantial capital assets which it can only sell once it stops trading (for example machinery or a building) and then everybody gets their money, eventually.

You have no rights in respect to gaining employment with the new company. They can offer you a job, of course - that's up to them. They don't need to carry forward your existing service.

All of this applies if the company closes and a new one opens - if the old company SELLS itself or part of itself to another company, whether it's a new or previously existing one, then this might count as a takeover, in which case you would have rights under the Transfer of Undertaking (Protection of Employment) Act (TUPE).

Answer 3

None whatsoever. It is so unfair. Unless it reopened as the same company trading as the same company nor rights at all. This is life it is the same if you are self employed and you carry out work for someone they go bust and re open andyou dont get paid. I hate it as it has happened to us.

Answer 4

it depends...did you get laid off? If it is under new management and they decided to bring in new people, there is nothing you can do but file for unemployment or find a new job.

Answer 5

IF A LIMITED CO , NONE