# Owed wages and holiday pay



## François (7 Jan 2010)

Hi,

I haven't been paid in nearly four weeks.

The company I work for is in a pretty bad situation. It owes vast sums of money to banks and creditors. 

My boss suggested to me that he could put me on temporary lay off if I wanted. This would mean I would be able to claim social welfare for up to 8 weeks then I could apply for my statutory redundancy from the government.

Or I could continue working as I do now and he will pay me what I am owed when money finally comes in. 

I really cant see any money coming in for at least a month and at that stage I will be owed nearly 2 months wages plus holiday pay and I really cannot see there being enough money to cover the companys arrears when it does.

My question is if I continue to work on the promise of being paid everything I am owed in a months time, and when that time comes there is not enough money to cover my wages will I be able to claim my lost wages and holiday pay through some government body? 

The company owes millions to banks and creditors so I know that when it finally goes in to liquidation there will be no money to pay me what I am owed.

But on the other hand if I was guaranteed to get my wages from some government body (if my boss is unable to pay me) it would make sense for me to continue working as my weekly wage is €800 compared to €195 on the social welfare.

Can anyone advise me?

Regards,

Fran


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## jack2009 (7 Jan 2010)

The Department of Enterprise Trade and employment will restrict your wage and holiday pay to €600 per week and they will not pay you for more than 8 weeks.  However, if the company does close you will not be able to work your statutory notice period and this will also be covered by the Department of Enterprise Trade and Employment.  The other problem is that you will be waiting for about 6 months before getting paid.  

If you have worked there for more than 2 years then you are entitled to statutory redundancy.  

The Department of Enterprise Trade and Employment will not pay you your statutory redundancy if the company continues trading without going to the Employment Appeals Tribunal this means another long wait.

Your employer is supposed to pay you and then claim a rebate of 60%.

If you hang in there, and then suffer a loss you are back to waiting for the Department to process your claim that will be restricted to €600.

You are in a bit of a muddle, work out how much you are due including statutory redundancy and stick with the company for that period of time.

Is there any chance that the company situation will improve or is it on the verge or past the point of trading while insolvent.


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## François (7 Jan 2010)

Jack, thanks for replying.

I really think the company is beyond being salvaged at this point, the market has completely collapsed and a lot of businesses that owe us money have gone to the wall.

So are you saying if in a months time, I am owed 8 weeks wages of €800 which is €6,400. The Department of Enterprise Trade and Employment will pay me 8 weeks wages of €600 which is €4800 which mean a loss of €1,600. So realistically I would be best off to apply to the DETE after 8 weeks of non payment as I would not be entitled to anything beyond that point.

Regards,

Fran


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## jack2009 (7 Jan 2010)

No, not as simple as that as the Department will not pay unless the company has gone into liquidation at this stage!  Although I think you may be able to get paid if you go through the Employment Appeals tribunal.


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## François (7 Jan 2010)

Thanks, jack. 

I don't particularly want to go down the social welfare route if i can help it.

I think i'll persist with the job if there is a good chance that i will be paid the bulk of my 8 weeks wages through DETE or the Employment Appeals tribunal if my boss is unable to pay me at that point.


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## jack2009 (7 Jan 2010)

Best of luck, feel free to post any further questions you may have.


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## Liquidator (12 Mar 2010)

Francois, it sounds very much as though the company will be put into recievership by the banks (if they owe as much as you say.)..When this happens it is likely that you will keep your job under the reciever.  Also you will be able to claim arears of wages from them.  Ask fill out an EIP1 form and have them lodge it with entemp


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## jack2009 (12 Mar 2010)

Op makes no mention of the company being in arrears with the bank!

To say that OP will be "likely" to keep job under the receivership, is very misleading as this is often not the case.


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