Redundancy then Re-employed under different Company

D

Dutchie

Guest
Can anyone help on this matter...

Could a company make someone redundant and pay nothing getting the employee to claim the full 100% redundancy from the Social Welfare Fund as they are in the process of closing the company down and have no money to pay the redundancy themselves. Then re-employ the person in a new company that they have set up. Same director etc.
Basically - give the employee a chance to get a lump sum and it costs the employer nothing!! - Is this possible.
Thanks
 
If a director says his company has no money to pay its debts, tax and other obligations is this not basically saying the company is bankrupt ?
Could he therefore immediately open another company ,or at least could he be a director in that new company?
Or does it depend on what type of company, what percent the director owns etc etc?

I do remember in the mid-eighties a large travel firm declaring bankcruptcy. All the employees had to get redundancy from welfare -and then within days they were all employed in the same premises in the same seats under the same boss -but it was a different company (which had been created previously but had been dormant).

But i thought all that type of thing had stopped with new legislation. Not so?
 
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