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I worked for a company who went into administration in Dec.

Customer Question
I worked for a company...
I worked for a company who went into administration in Dec. (last day of work was mid Jan)
In Feb my ex boss approached me and 8 other individuals and informed us that the owners wanted to re-start a similar company (with some extensions to the product) and needed our expertise etc. The original plan was that it will take a few weeks (maybe up to a month). Our concerns was that well be earning nothing if we wait for the new start-up /restart so an informal agreement was made that we will be paid from 1st of March irrelevant of operations starting or not in March (original start date would have been March).
We where made many promises and even received a "temp" contract. We have received the same "contract" a few times with modifications over the past few moths.
The problem was that we were always 1/2 days or a week away from starting operations. the start date is continues been delays (new promised start date is 1st jul with welcome bonus to cover March - June as it has been changed every time ). due to this all 9 of us has accepted that we will get employed by the company (company might not be registered yet but was promised a few times to be complete) and have therefore not attempted to find other employment. we accepted on good faith.
Now the current situation is that it is already 5 months after the initial approach and we have not received any money nor a contract signed by the lawyer / CEO and some of us had been affected very bad financially (myself cannot afford this month`s bills and are already behind and overdrawn on my accounts). I approached the people in charge and been given the "later today or early tomorrow morning" treatment every time.
We have not been given any reason but a vote of confidence that all is fine and will start 1 Jul (but we heard that before)

My question is:
Do we have any legal footing in this matter. I feel that we are due this money and that the person (all leads to one person , the CEO) in charge of this is liable for our current situation (I.E. my credit rating I worked on is most likely very bad as I missed a lot of payments trying to make ends meet and I had to cancel my part time studies till I can afford the tuition again). I would say each of the 9 has their own issues that arose due to this.

Please advice or let me know if there is something not clear
Submitted: 8 years ago.Category: UK Law
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6/30/2010
Solicitor: Senior Partner, Solicitor replied 8 years ago
Senior Partner
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Experience: 30 years experience in business law and related topics such as employment law
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this must be very distressing and frustrating but frankly i doubt there is anything you can do as all these promises sound like vague conditional promises that are unlikely to be legally enforceable. Who would you sue , the old boss? the new company? Does it have funds? I think you should say unless they start to pay you from july 1 then you will look for another job. I would start looking anyway.

what did the so called temp contracts say? presumably no payment has been made under those?



did you get redundancy form your old co?
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Customer reply replied 8 years ago


Thank You for the responce.

 

I was thinking of the EX CEO as the company was bought by him in full as a private self owned company.
The company had beed funded by a parent company and has funds but I was more thinking in personal liability against the owner as he is the one who makes the desisions and has the only and fal say in the happenings.
The contract was a employmnet contract set out my duties , salary , start date etc.
No money received at all , been invited to meeting regarding the setup etc but did not even get refunds for those only empty promises.
The company was put into administraton and received 2 weeks insolvency payout.
I have may emails and TXT messages regarding the conversations (explanations and promises) , I asume these dont mean much legally or do they.


Here is one of them (1st one)
================================
Hope, you are keeping well. I don't know if you already found a new employer. However, since xxxxx went down we have been thinking of what to do next.
We decided to prepare a new launch of a "facility" similar to xxxx. The plan is to have a trustee owning the company so it doesn't show yyyy in first instance as being a front man.
He won't be the CEO as this wouldn't work with his current reputation. However, he will be funding the story.
Negotiations with the administrator are already initiated to buy back the system so we can re-instantiate the xxxxxx under the new umbrella.

Currently, office tenancy agreements are close to get signed. We are planning to run - like I said - a similar setup with buying one or two foreign processors.
The new setup will have a focus on yyyyyyy facilities rather than the processing.
Don't get me wrong, we still will do processing but we would put more emphasis on the back end side of it.
Currently, I asked yyyyy to get started with certain contracts to prepare. As I said, roles will slightly differ but it will be to everybody's benefit - I will take care of this.

I can't present you a proposal right now but hope to have one ready mid next week. If you are interested I would be delighted to discuss further details with you. Let me know your thoughts

================================


Then after months some of these came around (we received these sort at least 2 times a week for a day or two delays as reason)

================================
Dear all

Again, apologies for the delay but finally we've got things ready for start off. I'm really glad, things got sorted the way we wanted it to be. Although being delayed we are confident to have done it the right way and you'll see what has been achieved when starting the operations.
I do appreciate your patience with us and your loyalty for the new setup. I would like to invite you for Friday morning (April, 30iest) to countersign the contracts. I will send the updated contracts with all your personal data inside to everyone individually. I will confirm the time and place to meet on Wednesday as I am waiting for some final confirmations by tomorrow.
We are going to push out a lump sum to everybody's individual account this week, provided you are still interested and you sign the contract with us on Friday. Once again, many thanks for being patient. I look forward for a good opportunity for all of us starting as of next week.
=================================

 

We had another meeting today and the promise now is that we will start monday , receieve some money and get signed contracts.
Sureley if it doesnt happen it must be misleading to cause some sort of harm (real financial and mental harm has come to me and some of the others).

 

I had two job offers in final stages and after disscusions decided to not continue with them as I was under the impression it was a job offer at the new company

Solicitor: Senior Partner, Solicitor replied 8 years ago
I am afraid i do nto think these emails amount to anything more than mere "puff" there is nothing that would justify a claim for breach of contract or misrepresentation. there are no terms capable of acceptance.

If you look at ti the other way round if you had accepted another offer do you think there is anything here that would have prevented you form doing so?

there is I am afraid no real commitment
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