# Whats happens if ex-employer cant pay Compensation?



## nh1971 (30 Apr 2009)

I have a case for Unfair Dismissal against my last employer that we are waiting on a date for.  2 years at this stage.  

I have just heard that my ex-employer's business is at risk of closing due to the recession.   What happens if I win my case?  If the business is closed, will my ex-employer still have to pay me?  Can they claim they have no money?

Has anyone been in this position?


----------



## jhegarty (30 Apr 2009)

Is it a limited company ?


----------



## nh1971 (30 Apr 2009)

I'm not sure.  It doesnt say it on any of the payslips or paperwork I have from them.  Would that make a difference?


----------



## jhegarty (1 May 2009)

nh1971 said:


> I'm not sure.  It doesnt say it on any of the payslips or paperwork I have from them.  Would that make a difference?



If it is then you get in line with the other creditors , if not then you can go after his personnel assets.


----------



## nh1971 (1 May 2009)

Thanks for that.  I kinda thought that was the case.  Will have to see what happens when the case comes up.  

When you say go after their personnel assets, do you mean their house, savings etc?


----------



## vectra (6 May 2009)

my husband is in the same situation. He has been made redundant last friday.  supposed to be given 4 weeks notice.  employer refused to sign the rp50 form and claims that the company have not got the money to pay the full redundancy.  he has been advised to go to the employment tribunal, but know people that have taken cases to the employment tribunal and have won their case, but still have received no money.  The company is a limited company, so as far as i am aware there can walk away from their debts in the event of them going out of business


----------



## extopia (6 May 2009)

nh1971 said:


> I'm not sure.  It doesnt say it on any of the payslips or paperwork I have from them.



Have you tried searching the CRO database?


----------



## runner (7 May 2009)

Many limited companies that go bust genuinely have no money to pay anything at all.


----------



## jpd (7 May 2009)

vectra said:


> The company is a limited company, so as far as i am aware there can walk away from their debts in the event of them going out of business



That is the whole point of a Limited Company - the members (ie share owner) liabilities are limited to their initial investment.


----------



## nh1971 (8 May 2009)

Thanks for all your replies.  I have found out that they were Sole Traders until earlier this year when they became Ltd Company.  

Will this affect things?


----------

