Employee owed monies by an employer suspected of ceasing to trade

6.8.24 Updated on:13 October 2021

What to do

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, 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 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.

If you have not been given a cheque, it is important that you act quickly and the first step is to tell your employer that you intend to go to Petty Debts Court.

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.