Firstly, I'm not sure if this is the correct forum, as it relates to company, employment and legal issues, but regardless of which forum I'd appreciate any help on this.
The circumstances are as follows:
- Everyone in the company has just been placed on notice that they’re at risk of redundancy
- They’ve been told that the company needs to downsize significantly (to less than 1/3 of its current size)
- They’ve also been told that the company is dependent on its investors for support, and that currently there are only sufficient funds to cover salaries for October and “maybe November”
It’s clear that there are currently insufficient funds to meet redundancy obligations.
As I see it there are three possible outcomes:
- The company is clearly insolvent, everyone loses their job, and have to claim redundancy from Dept of Social Protection.
- The company gets funding and/or sales, downsizes as planned and pays everything owed to those being made redundant.
- The gets funding and/or sales, downsizes as planned and says “we don’t have sufficient funds for redundancy payments: go claim from the Dept.” It seems there is provision for doing this.
My question is in the case where this third scenario plays out, can the employees being made redundant seek the liquidation of the company as they are creditors who are not being paid?
The circumstances are as follows:
- Everyone in the company has just been placed on notice that they’re at risk of redundancy
- They’ve been told that the company needs to downsize significantly (to less than 1/3 of its current size)
- They’ve also been told that the company is dependent on its investors for support, and that currently there are only sufficient funds to cover salaries for October and “maybe November”
It’s clear that there are currently insufficient funds to meet redundancy obligations.
As I see it there are three possible outcomes:
- The company is clearly insolvent, everyone loses their job, and have to claim redundancy from Dept of Social Protection.
- The company gets funding and/or sales, downsizes as planned and pays everything owed to those being made redundant.
- The gets funding and/or sales, downsizes as planned and says “we don’t have sufficient funds for redundancy payments: go claim from the Dept.” It seems there is provision for doing this.
My question is in the case where this third scenario plays out, can the employees being made redundant seek the liquidation of the company as they are creditors who are not being paid?