PPRuNe Forums - View Single Post - East Anglian Air Ambulance temporarily grounded/Longmint status
Old 31st Mar 2011, 13:47
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Whirlygig

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Join Date: Feb 2003
Location: Propping up bars in the Lands of D H Lawrence and Bishop Bonner
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Is there any law against a company issuing pay statements but not paying what is on that statement ie: expenses or maybe even salary?. Or Sterling may have been claiming expenses from National Grid but not passing them on to the workforce that have incurred those expenses?
Of course there is; it's called Breach of Contract and, in this case, the contract is the employment contract. But sadly, if the company has no money in the bank, there is not a lot the law can do to protect you.

In the event of a company going into liquidation, employees' salaries are fairly high up the list of preferential creditors but only to the tune of £800 each. If salaries owed are greater than that, then the balance becomes part of the "pot" of trade creditors who may get a pittance at the end. Expenses also are sadly part of the pot.

Statutory Demands Explained

And may I wish Chief Pilot all the best in the future.

Cheers

Whirls
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