My workplace is closing down, what are my rights as an employee?

Question

My work is closing down in 1 months time

we were initial told last year that it will close in 2014 and 3 months notice will be given  or close the store and pay us for the 3 months plus redundancy

we have been told today that is is closing next month (1 month notice)

we were also told that any holidays we are allowed will be reduced plus any holidays taken between april and closing date will be taken out of our wages if it exceeds the limit they gave us today (I have taken 1 week, and have 3 more weeks booked before the closing date, i cant ask for holidays to be taken off my rota because i have booked a 2 week holiday in advance

My sister and I who work at the store have been left with 1 month to find a new job and money taken out of our wages for holidays we have taken and booked in advance before being notified of closure

Does this sound fair? do I have any legals rights to question this?

Margaret S · Answer

Your final salary will of course be minus any holidays you have taken which have not been accrued yet. If your leave year starts each April then you will have used the week you mention plus there have been 4 bank holidays so that would be 9 days used. You accumulate just over 2 days a month so you will lose some money for the days you have taken over the amount you actually had.
Your redundancy will be probably the minimum allowed. You have to have been employed for at least two years.
The rates are
half a week’s pay for each full year you were under 22
1 week’s pay for each full year you were 22 or older, but under 41
1 and half week’s pay for each full year you were 41 or older
They told you months ago that either they would give you 3 months notice or pay for the 3 months so I don't see what you are worried about.
You had lots of warning, they have not given you the 3 months notice but will be paying you for those 3 months minus any holidays you have taken but not accrued yet and you will get redundancy.

? · Answer

You are entitled to be paid for the hours you have worked
As for holidays/annual leave, if you have taken more holidays/annual leave than you are due , to date,
then off course the company can take that back in wages, as you have strictly speaking been overpaid
Your holidays accrued should be on your last pay slip, maybe check
You are entitled to a P45 and hopefully a reference
If you have worked there 2 or more years, you are entitled to a redundancy payment

JJ · Answer

IF you signed a contract for your job that outlines your pay structure and a clause is in there saying they are required to pay 3 months at termination then you may.  If you are employed "at will" which most jobs are they are under no obligation to perform any action you work there at your will and you are employed by them at their will, so any termination can be done at their discretion.

Anonymous · Answer

It may not seem fair to you, but the company will have made sure they are acting legally before they offered all of you the deal.  When a company shuts down, it is usually because they are broke and can't afford to pay the bills.  You should consider yourselves lucky that your company is actually offering you all 3 months pay plus redundancy, most companies just go belly up and pay nothing.

Much as you lot would like thousands and thousands of pounds in compensation, there is simply not enough money there, you can't blood out of a stone.

Just accept the deal and hope the company has enough money left at the end of the money to keep up with what it has promised.

Legally there is nothing you can do about this situation or their offer.

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My workplace is closing down, what are my rights as an employee?

4 Answers