Private Limited Company - Not enough money to make settlement fee.

[duffy1807]

Hi Guys,

 

 

A claim with an employment tribunal has been going through, and on Friday 15th 2016, and agreement was arranged as an out of court settlement to pay a fixed sum of £9,000 by Friday 22nd 2016.

 

 

I have now been informed that the company is unable to make the payment as it does not have the available funds in the bank.

 

 

the company is still active, does anybody know what I should be doing to get the funds paid?

 

 

The agreement was set through ACAS.

 

 

Thanks Guys

[BankFodder]

I don't know the exact answer to your question – but there must be some kind of way to enforce this agreement and it maybe by going to County Court and bringing an action for the agreed sum.

 

What with the terms of the agreement? Have you contacted ACAS and asked them what they say about this? They may well have the solution for you

[duffy1807]

I am struggling to find out where I stand.

 

 

I worked for a huge renewable energy company who dealt with Boiler's, Solar Panels, Battery storage and windows. for 2 Years. I was then TUPEED over to a different company because the Company was cold calling and gained a bad reputation. As a result of its reputation I tupeed over to a smaller company with about 38 employee's however it is still *technically* the same company.

 

 

I have just had a response from ACAS, and just found out the document is not currently legally binding because the company held up on signing the documentation. I was then advised to re-open the case with the tribunal I have just done this now by email.

 

 

This is a complete nightmare :/ the company Is deliberately avoiding paying out what it owes.

 

 

Regards

 

 

Craig

[ericsbrother]

I belive that you can apply to get an HCEO to collect at a tribunal is a court and the amount is above £650. The fee will be about £70 but you add that to the monies owed. Your problem is whether a court has actually ordered the payment. Small claims procedure will cover the amount if needs be but again, it will delay things.

[steampowered]

If the settlement agreement was never signed and is not legally binding, then you cannot enforce it. You would need to proceed with the Employment Tribunal case.

 

The concern would be if they are trying to wind up the company to avoid paying you. Do keep an eye on your employer's company profile on 'companies house beta' and set up an alert to be informed if any insolvency documents are lodged. For example, if an application to strike-off the company is filed, you would want the chance to object to that before the strike-off goes through.

[duffy1807]

I belive that you can apply to get an HCEO to collect at a tribunal is a court and the amount is above £650. The fee will be about £70 but you add that to the monies owed. Your problem is whether a court has actually ordered the payment. Small claims procedure will cover the amount if needs be but again, it will delay things.

 

 

 

 

 

Thank you very much for you helpful reply.

 

 

Unfortunately - ACAS has advised me that their is no legal binding contract. It was typed up as a draft for the company to verify and agree. After both party's agreed the documents had to be signed however the company refused.

 

 

I find it very difficult to understand why the company is playing games, they are registered as an (advertising company) who supply leads for home improvements i.e Solar / Boiler / Wall cavity / Windows ect. all of the leads produced are only ever sent to their own partner company to do the installation work and sale's pitch ect. They are both technically the same company ran by the same director's.

 

 

Because they did not sign documentation it is not a current legal binding contract, I have now RE-OPENED my tribunal case which was the last thing on my mind to do. They invited me in for a meeting on Monday, and explained the *advertising company* does not have the available money in the bank, however we would like to offer you a job with our other branch who deal with installations and sales of just boilers with a guaranteed contract of 12 months.

 

 

They then also tried to barter with me, saying if I accept the job they do not believe they should offer me 9k and asked what the minimum I would accept would be. I explained that 9k would be the lowest because of the hassle and stress and losses I have gained as a result of their mistake.

 

 

My head is spinning around .... :/

 

 

Thanks

[duffy1807]

If the settlement agreement was never signed and is not legally binding, then you cannot enforce it. You would need to proceed with the Employment Tribunal case.

 

The concern would be if they are trying to wind up the company to avoid paying you. Do keep an eye on your employer's company profile on 'companies house beta' and set up an alert to be informed if any insolvency documents are lodged. For example, if an application to strike-off the company is filed, you would want the chance to object to that before the strike-off goes through.

 

 

This is excellent. I never knew I was able to do this , thank you very much I have now done this and was informed I can appeal as many times as I want and each appeal extends the strike off period to 6 months.

 

 

Thank you - very helpful

[becky2585]

I'm a little confused by this!

 

A COT3 agreement doesn't have to be signed to be legally binding. If the parties have verbally agreed terms then that's usually sufficient. Did the company refuse to agree to the wording of the COT3, or was that agreed and they subsequently refused to sign?