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Advice for the Recession-Paranoid

trouble at bill

09:20 / 23.01.09

Hello my hardly stragglers! Just before the 'Lith is locked down I wanted to ask your advice about something.

I have not been paid for December due to what I have been assured (and until today believed) was an administrative hiccough. I am suddenly getting paranoid that it may be more serious though and that my company may be in the process of discreetly going bust. Just supposing it is, what do people do in such situations? To get what they are owed, I mean? (I'm UK-based, btw.) I want to think there are sensible, grown-up things one can do, but I don't know if there are or what they are...

Spaniel

09:59 / 23.01.09

This could well be of help. It's the Open University's guide to helping folk through the recession and it's surprisingly good.

Neon Snake

13:01 / 23.01.09

Are you a full-time employee, or contracted, bill? It makes a huge amount of difference. Have other people been paid, do you know?

If you are a full-time employee, then IF the company goes into administration, then you can claim unpaid monies back from the government (I believe - anyone know different?).

If a contractor, then you end up on the same list as all of the other creditors, and it ends up being a big bun-fight, usually with the tax-man and the administrators being paid first, then (permanent) staff, with, unfortunately, contractors near the bottom.

Without knowing the company you work for, or the sector, this is just speculation, but a lot of companies are undergoing fairly heavy cash-flow difficulties at the moment, with borrowing being heavily curtailed and payment terms being supplied; a lot of companies though are entering January in slightly better positions after Christmas - retailers especially, obvs.

Good luck.

Quantum

13:18 / 23.01.09

Go and insist on it before payday. Don't leave them the excuse it'll have to wait until the next one, you're entirely within your rights to get paid, administrative hiccups be damned. Then at least if they are folding you'll know early and won't risk working for nothing.

trouble at bill

16:09 / 23.01.09

Thanks folks, things are looking better (but I have yet to verify that 100%). It was a nasty moment though, as if the company had gone tits-up today I would have done neary two months' work for nothing, fuuuuck!

I am a contractor, unfortunately. It is a small company, meaning that rather than a big Kafka-esque bureaucracy I have to deal with just one or two people who have a motive to conceal any impending doom from employees until the latest possible moment.

I am curious about how much right one has to cease working until one is paid in situations like this. Not that I'd like to try doing it, but I presume a reciprocal breach of contract is always within one's rights if only in theory.

Neon Snake

16:38 / 23.01.09

All depends on your contract, bill.

You should have a clause in your contract which states that you will invoice them monthly (say), and that payment will be made to you within 14 days (say); then on day 15 you are well within your rights to stop providing your services.

trouble at bill

13:35 / 24.01.09

Ta, will dig it out and check it!

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