Employment Law - help, please

[Kleiber]

My 18-yr old son has been working for the same small company for 2 1/2 years, self employed for the first year, then "on the books" since October 1st 2006. He was initially taken on as an apprentice plumber, but the boss ignored all his obligations and now K Jnr is just a labourer. He should have had a pay rise on his 18th birthday, to bring him up to the legal minimum wage, but has not. The company has 3 employees, non of whom has a contract of employment (I know this is against the law). The boss declared himself bankrupt about 2 yrs ago and put the business in his wife's name. He is now selling his house (methinks the bank or receivers have something to do with this) and talking about winding up the business. I know the lads haven't got a leg to stand on, because of the lack of contracts and the fact that the boss is bankrupt. I've a feeling that, come Xmas, it will be "Bye Bye, guys". Do any of us have any redress, perhaps as creditors of the Company? My son is owed hundreds of pounds in back-pay. Any suggestions welcome.Ta K.

[themas]

If he is owed wages then he can go to an Employment Tribunal to claim them. There is a procedure to follow, & he should visit the local CAB for advice on this, or ring ACAS helpline. If the employer is insolvent then there is a Government fund which can pay the money.

If he loses his job because the employer winds the business up then he is redundant, but his service may well be too short for him to qualify for any redundancy pay.

However, if his formal dismissal is done without due notice (in his case, 1 week as his self-employed period does not count & he has only done 1 full year as an employee) then he is entitled to pay in lieu of notice - again, from Govt. fund if employer insolvent.

[Kleiber]

Thanks, I'll bear that in mind. How does he stand, though, without a contract of employment? They should all have been given one last January, but despite asking his employer, no-one has got a contract yet and now it seems highly unlikely that they ever will. What about holiday pay as well? K Jnr hasn't taken any holiday this year, but his boss says he's entitled to 4 weeks. If he doesn't take it, can he claim that as well?

[Kat213]

It is not a legal requirement to have a contract of employment as such. It is a legal requirement to have a statement of some of the terms of employment but if the employer has not given this, it will not weaken your son's position. He is entitled to claim his back pay through Employment Tribunal and if the employer is insolvent there is a government fund which will step in to indemnify.

I would say go for it, he is entitled to his back pay, any outstanding holiday pay at termination of his employment and, as has already been pointed out, pay in lieu of notice if he is not given any.

Most Citizen's Advice Bureaus will advise on matters of employment law, and even conduct the tribunal, without charge.

Good luck.

[Kat213]

Sorry I should have made this clear in my post above - the absence of a Statement of Terms in accordance with s1 Employment Rights Act will in fact entitle your son to additional compensation if he is successful on the other claims.

[Kleiber]

Cheers - at least that gives us some hope! He's had a verbal confirmation of his conditions, i.e. the boss has said he's entitled to 4 wks' hols with pay, but he also says he can't afford to pay his staff any more money than what they're on at the moment. Surely he's got to pay them at least the minimum wage?

[themas]

Yes - he does have to pay the minimum wage. Failure to do so can also be a claim to an Employment Tribunal.

[Kat213]

At 18 he is entitled to a wage of at least �4.60 per hour. The full rate is not payable until age 22.

[Kleiber]

Yes, I know, Kat - he's only on �4.45, poor kid. He should've had a raise on his 18th birthday (7 months ago), but it never happened. He works long hours, too, but only gets the same wages every week (it's as though he's salaried, but he's not). In my mind, he should have a time-sheet and get paid for the hours he works.