# Liquidation - rights of employees?



## kildarebuild (13 Jun 2006)

Hi

Was working for a company in dublin, which was liquidated about 3 months ago. Boss says come into my office on friday evening. Sorry company closing down dont come back monday. 

I had worked 3 days unpaid, was entitled to 2 days holidays and one months minimum notice as stated in contract between us. 

Filled out form that came from the liquidator. Grand. 2 months later comes a cheque for 700 and so. Shouldnt i be getting more than this? How does it work out. Are liquidators chancers or fair business men? Is their any point in appealing to it? Does anyone have any experience of this?

Thanks

_[Title edited for clarity by ]_


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## ClubMan (13 Jun 2006)

Sorry to hear about your situation. All the liquidator can do is distributed the (usually scarce) funds available to the creditors in order of precedence (e.g. _Revenue _and other preferential creditors first etc.). I'm sure that you could ask for more information about the disbursement of funds in this situation. I don't think it's fair to imply that some or all liquidators are chancers.


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## contemporary (13 Jun 2006)

to get paid at all by a liquidator is something, never mind to be paid within 2 months....


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## kildarebuild (13 Jun 2006)

Sorry im just a bit bitter about the suddeness of the situation. I should be happy i got something.

Thanks


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## contemporary (13 Jun 2006)

liquidators take what is available in the company and sell it off, or recover outstanding debts to the company they then pay themselves first and then any preferred creditors, the remaining creditors then have the balance of what is left divided up amongst them and generally get Xcent for every Yeuro owed.


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## Superman (13 Jun 2006)

Employees are preferential creditors though, aren't they.  
Or is my company law really rusty?


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## ClubMan (13 Jun 2006)

As far as I know they are but it doesn't guarantee 100% payment - just a slice of the presumably small pie.


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## angie (14 Jun 2006)

If the company can't pay don't the dept of enterprise and employment cover amounts owed to employees ?  You can certainly make a claim for redundancy on the website www.entemp.ie and I thought you could claim for unpaid wages too but I could be wrong.  The liquidator should be an accountant so should be able to advise you.


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## Mel (15 Jun 2006)

Something similar happened in a place i worked, we were each owed a month's wages when they called in the liquidators. 
From what i remember, once the contract is breached in any way - e.g. by not giving the minimum notice period, then it is rendered invalid and you are no longer entitled to other stipulations of the contract, e.g. months pay in lieu of notice.
If you have been left short by the liquidator, then as angie said, dept of enterprise and employment will cover outstanding pay up to capped limits. The liquidator should forward on any forms you need to complete, or you could make a call to them and see if there is anything outstanding. 
It took about 18 months for us to be paid by the department, as there were no funds available to the liquidator to pay us anything.  
The government would not pay you for holidays owing or the notice period.


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## kildarebuild (15 Jun 2006)

Thanks - I get onto the liquadator and sees what he says. Much appreciated in the advice. Regards


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## kildarebuild (22 Jun 2006)

Was onto the liquadator - asked about distribution of the funds. I got paid in full the holiday pay and the days worked but only got one week minimum notice as opposed to the one month minimum notice as stated in the contract. 

Apparently their was no funds to pay the workers so everything came from the department.

Minimum notice awards by the Insolvency Payments Section are made in accordance with an employees length of service with the insolvent company.

In my case I worked there for 9 months . This means that the Insolvency Payments Section will only award to you one weeks gross pay in respect of minimum notice. Employees who have between 13 weeks and 2 years service are only awarded one weeks gross pay in respect of minimum notice.

Just letting you know how it turned out.


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