What happens to employees wages that are unpaid at the time of the liquidation?
There is a Government scheme which ensures that certain payments, based on statutory maximum figures, can be paid out to employees by the Department of Trade and Industry. These include unpaid wages in the four months prior to the commencement of the liquidation, statutory notice, redundancy pay and unpaid holiday pay. Currently the basis of calculations is on a statutory maximum of 260 gross per week. Directors are entitled to claim these sums, if they were employees of the Company. In some instances, where a director is also the controlling shareholder, his claims may be challenged by the Department of Trade and Industry.
