Unfairly dismissed employees losing out as firms go under
Saturday 2nd March 2013, 4:00PM GMT.
Gary Thompson
COMMERCE and Employment has admitted that it is powerless to help people who have won claims for unfair dismissal but have not got their money.
At least four people who were wrongly sacked in recent years have been left counting the cost after their employers went bust.
‘Unfortunately, when a company goes into liquidation many creditors are affected,’ said a department spokesman.
He said the department was conducting a review of the island’s insolvency law regime and issues such as this would be part of it.
In November, an Employment and Discrimination Tribunal awarded Gary and Lisa Thompson a total of £41,561.
Mr Thompson, a chef, and his wife, who was ‘front of house’, were running the restaurant at Beaucette Marina for On The Rocks Ltd.
The company accountant mailed the tribunal a few days before the hearing to say On The Rocks Ltd was no longer trading.
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Another guernsey shambles
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Not much sympathy for the unfortunate then?
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No just an unimaginative troll who used to live here. I don’t get some people that have left because they can’t stand the island but continue to take an interest in the news here.
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This is a well known variant of the bait and switch, essentially the company sells its assets to a second company, goes banrupt due to lack of liquidity which makes the debt “disappear” and the creditors get a bunch of worthless computers and desks etc.
The same company then sets up again under a slightly different name with the partners (ie wives etc) of the directors holding the titles and deeds and with the same customers who are often sent a letter advertising nearly the same services the old company offered.
Happens a lot, for more information see the list of “companies dissolved” in Le Gazette.
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Ok, so the Department is ‘conducting a review’. When do they expect a report on this review? Employment legislation in Guernsey is still in the Dark Ages, so is the Department ready to grasp the nettle? I’ll believe it when I see it…
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