Citizens Advice Bureau

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LOCAL INFORMATION

6.8.24
Employee owed monies by an employer suspected of ceasing to trade

Extent: Jersey
Updated 11 August 2016
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Words you may need to know

 

Viscount's Department - this is a States Department with many roles such as Court enforcement functions, jury functions, Coroners functions etc. They can be contacted on 441400

Functions - roles or duties

Enforcement - to make people obey something, often fines or payments

Bankrupt/en désastre - this means that the company is unable to pay their debts

Administrator - someone tasked with carrying out admin duties such as collecting monies, sending out letters and invoices, dealing with people and paperwork etc

Wind up the affairs - settle debts, collect money in, make decisions about  matters

Bounces / bounced cheque - this is a cheque you have put in your bank and it is returned to you as there is not enough money in the persons bank account to pay it, or the account has been closed

Creditor - someone who is owed money by someone

Priority - comes first

Preferential - special, favoured, better position

 

If you think that  your employer is no longer in business, you need to work out what money is owed to you. Some of the things that you might be owed are; wages for work done, any bonus, holiday pay, notice or payment in lieu of notice.

You then need to check with the Viscount's Department to find out if the company has been declared bankrupt/en désastre or if an administrator has been appointed to wind up the affairs of the company.

If you have been given a cheque from the company which bounces, it is important that you get what is called an Ordre Provisoire. See 4.32.0.L10

If you have not been given a cheque, it is really important that you act quickly and the first step is to tell your employer that you intend to go to the Petty Debts court and get a summons to obtain judgement (which will probably give cause for concern to other creditors). If possible get cash to avoid a cheque bouncing.

In a bankruptcy, money owed to employees takes priority. They are called preferential creditors. Wages or salary owing to an employee for up to six months before the désastre was declared, plus holiday pay and bonuses due to that date come first but the maximum amount payable preferentially to an employee is £4,500. If you are owed more, you will get the rest in the same order that other creditors are paid out.