Creditors' Voluntary Liquidation - anyone experienced??

Presuming you're a regular salaried employee, have this bit of info shamelessly nicked off another website:

"Where an employer becomes insolvent owing debts to employees there is a special scheme to compensate these workers. This is known as the 'Insolvency Provisions' of the Employment Rights Act 1996. Under Section 184 of the Act the Department of Employment Redundancy Payments Section will pay to such workers the following debts:

• Any arrears of pay up to eight weeks.
• Any statutory notice pay.
• Up to six weeks' holiday pay.
• Any basic award of compensation for unfair dismissal from an employment tribunal.
• Reimbursement of fee or premium paid by an apprentice or articled clerk.
• Repayment of contributions to occupational pension scheme collected from employee's pay but not paid into pension scheme by employer - Section 124 Pension Schemes Act 1993.
• Redundancy payments - Section 166 ERA 1996.

Contact must be made with the local Department of Employment Redundancy Payments Section for the appropriate forms. If a claim is refused by the Department of Employment, an appeal may be presented to an employment tribunal, normally within three months of the refusal."

Hi Baron - thanks for that. I had already seen that info but I don't 'think' that is quite the same thing. From what I gather, that is the claim I can make off the government if I don't receive the monies as a Creditor. That is why some elements are limited to basic entitlement whereas I 'think' (hope) I can claim more as a Creditor. This is really what I need clarification on.

Clarry-Love

Employee wages are the only preferred creditor these days so in a CVL you will get first call on the proceeds of the liquidation. Were you employed or a contractor? You don't need to attend the creditors' meeting as you can request a copy of the notes but you will need to submit a claim.

I was an employee with over 3 years service. I did my last piece of work for them in October but haven't been paid since June. I have never been terminated or given notice so I don't know what date to use with regard to calculating arrears. This is important as I will also need to claim pension contributions, notice, holiday pay etc.

CL

So you're owed monies June to October? In which case you need to accrue the other costs as you've stated proportionately. From your answers it sounds like you don't invoice them, but they give you a monthly payslip etc?

If you're an employee anyway, I presume they'll have records on this, but I imagine the insolvency practitioner would like the amounts corroborrated, hence the request for a statement of outstanding debts.

Best of luck - as BGB says, employees are the only creditors allowed preferntial settlement of debts.