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Legal question regarding an administration company that wound up a company.

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  • Legal question regarding an administration company that wound up a company.

    Hi
    I have a legal question regarding an administration company that wound up a company that I working for and arranged a CVA:

    · I worked for a company that went bankrupt, which lead to my redundancy. I was employed by them for over 4 years.

    · Before the company folded, a CVA (Company Voluntary Agreement) was issued which allowed the company to continue trading. They continued to trade after the CVA for a further 9 months. Until the business was unable to continue.

    · My final salary was £32,000 a year, I had a contract that set out a three month notice period for both myself and my employer. So if I wanted to leave or they wish to let me go, 3 months’ notice or payment in lieu of notice must be given.

    · I received a letter from the company at end of a working day telling me that I no longer had a job with the company and my employment end on that day. Letter stated the reason been financial problems the company had and that they were going into liquidation/closing down.

    · I did not receive redundancy pay from the company, which would of total three months’ salary. After tax my monthly salary was £2,086.64, before £2,666.67, I believe redundancy payments are not subject to tax so three months would come to about £8,000.

    · I put in a claim for redundancy with the correct government department and received 3 years payment capped at £450 (£1350) plus a payment for unpaid holiday pay. I was unable to claim for the fourth year because I continued to work for the company after the CVA had been issued so I had given up my right to statutory redundancy, this was news to me. I was told to register with the administrators of the liquidation as creditor, but as an employee I would be first in the line to receive a payment if monies are recovered.

    · I registered as a creditor but was told by the liquidators that as I had continued to work for the company after the CVA I would not receive any preferential rights as employee. I question this (by email), asking should I not of been informed that the CVA would affect my employment contract, my rights etc.

    · I struggled to get a straight answer form the liquidators, who kept avoiding contacting me by email but instead speaking me on the phone. I asked them who was responsible for the organising the CVA they avoided answering this question. After looking into this further it turns out that the liquidators were responsible for arranging the CVA, I went back to them and question this, asking should they not of informed me the change to my rights when the CVA was set up.

    · If I was treated as preferential creditor, I would stand to recover my money. I am one of three or four employees who qualified for redundancy. If I am not treated as preferential creditor then I stand to recover nothing as the outstanding creditor claims are in the millions.

    My question is this:
    · Am I correct that if the CVA had not been issued then as employee I would be a preferential creditor, so first to be reimbursed?
    · Is there no legal responsibility to inform employees of a company that is in CVA, that their rights or contract is altered?
    · I am reasonable certain that enough money has been recovered to warrant pursuing this further.
    · Does this sound like I have any legal standing to pursue this further?

    Any assistance would be gratefully received.
    Thank you
    Tags: None

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