My company is over 30 years old but like many others at present is experiencing a serious if not fatal drop in turnover. The company has reached the bottom line and is operating and functioning for the past 12 months only because it is being propped up by it's bank overdraft - I am now looking at making an employee's job of 16 years redundant because the lack of turnover and subsequent cash flow makes it unwise to continue to pay him from a bank overdraft. It is my intention to continue to trade as best I can on my own in order to slowly clear the bank overdraft and continue to pay my creditors and I would like this employee to act as an sole agent for my company after he is made redundant. The problem is the company does not have the funds to pay the 85% due to him and I am wondering where will this proposal lead to when he finds out that the company cannot pay any redundancy.
Any comments would be much appreciated.
Any comments would be much appreciated.