When you start work, your employer should tell you how much you’ll be paid, how often, the day or date you’ll be paid, the way how you’ll be paid (cash, cheque, bank transfer etc.).
If you’re an employee (not a contractor or a freelance worker), you have the right to a payslip, which shows your wages and any deductions like tax, national insurence contributions or trade union subscriptions.
If you’re a part-time worker, you must get at least the same hourly pay rate as a full-time worker doing a similar job.
If your employer fails to pay your wages, you have certain legal rights to recover this money.

A persistent failure to pay you would entitle you to resign and claim constructive dismissal and a breach of contract.
If you would like to discuss your situation please contact with us through our contact form, email or phone.

 

 

 

Before you start your actions you have to answer next questions:
a) what was the tenure of working?
b) when did you start your work
c) do you have the employment contract?
d) how was the relationship with your boss?
e) was there any appraisal done? if so what was your rating?
f) how much is the organisation liable to pay you?
g) do you have their joining and relieving letters?
h) do you have the last employment payslip? was it credited to your bank account ?

Is it Constructive Dismissal or Insolvency?

Although technically a one-off or occasional failure to pay your salary is a breach of contract, it is not normally serious enough to entitle you to resign and claim constructive dismissal. There is, though, an express or implied term in every contract of employment that your employer will pay your salary, and a persistent failure to comply with this obligation would indeed entitle you to resign and claim constructive dismissal and a breach of contract.

Alternatively, you may bring a claim in the employment tribunal for "unlawful deductions from wages" which is often a speedier remedy, and you can still be employed while making a claim. Any claim to the employment tribunal must be made within three months less one day of the breach, but you could choose to make the breach of contract claim in the county court, in which case you have six years to do so.

Where there is a persistent failure to pay your salary, it is likely your employer is heading towards insolvency or administration (possible an administrator takes over the company while deciding whether to sell or close the business). After two weeks an administrator may take on your employment rights, and if the business is sold your contract of employment may be transferred across to the new owners.

If, however, insolvency is the only option for your employer, the Insolvency Act 1986 provides that you become a "preferential creditor" in respect of salary due for the four-month period immediately preceding the insolvency, up to a ceiling of £800. In these circumstances, "salary" also includes commission. You are also entitled to be treated as a preferred creditor for accrued holiday pay and certain occupational pension payments. Amounts in excess of £800 (or relating to periods longer than four months) rank as ordinary debt, and so you are further down the pecking order for these sums, along with the bulk of other creditors.

If you still find there are insufficient funds to pay you, the secretary of state may reimburse part or all of your outstanding salary out of the national insurance fund (NIF). The Insolvency Service's Redundancy payments offices will deal with these claims, but the payments are capped at £430 a week for unpaid salary up to a maximum of eight weeks; up to six weeks' holiday pay to a maximum of £800; any statutory redundancy payment (as long as you qualify for redundancy in the first place); and outstanding statutory notice, up to a maximum of £430 a week. Your statutory minimum notice is one week for every year worked up to 12 weeks. If you find another job within the period of your statutory notice, you will have to reimburse the notice monies you have received from the NIF.

In order to qualify for NIF payments your employer must be insolvent and your employment terminated. You must also have done everything you can to get your payment, including applying in writing to your ex-employer for the payment within six months of the date your employment ended.

If your employer is a partnership or sole trader, then your options would be to commence personal proceedings against the individual owners who employed you, as they have no corporate entity to hide behind. Ultimately, you may have to commence bankruptcy proceedings against them.

It is hard enough losing your job, let alone not receiving salary for the time you have worked. It is always best to monitor the situation carefully as soon as you get wind of your employer's inability to pay its debts. Whatever difficult decisions you have to make, you cannot be expected to work for nothing, and many employees will "cut and run" in these circumstances, making whatever claim they can for lost wages while searching for a new job.