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Redundancy Issue

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Old 06-12-2007, 12:05 PM     #1
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Confused Redundancy Issue

Please can somebody give me some advice!!
I am part of a Committee that ran a small Social Club. The Social Club was Members Only and was situated at a Royal Mail Postal Centre, therefore the only people allowed to join were Postal Staff. The Club premises were rented off of Royal Mail but were completely 'stand alone'

About six months ago, our old 5 year lease was due to expire and we had already started negotations for a new 5 year lease. Whilst these negotations were being carried out, we, as a Club, were placed under a 'tenancy at will' agreement to cover us being on the premises.

We had got to the stage in the negotations where we had signed the new lease and it had been sent off to Royal Mail for them to sign it, when they suddenly terminated our 'tenancy at will' and gave us 28 days to clear out our effects and vacate the premises. This we have done, our last day in the Club being Friday 9th June 2007. We have also declared the Club as insolvent.

My problem now is that we had a Bar Manager who has worked consistantly for the Club for 18 years. (The Club had been running for 24 years)
We have offically made him redundant but he has turned around and told us that he is leagally entitled to 12 weeks redundancy pay as we only gave him a week or two notice. How are we: (a) supposed to pay him if the Club is registered insolvent? and (b) supposed to give him more notice if we ourselves were only given 28 days?

Thank you in advance for any help or advice.
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Old 06-13-2007, 08:45 PM     #2
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Default Re: Redundancy Issue

He can claim against the insolvent entity if he wishes but if there are no funds to pay him there will not be much he can do. He does have first priority to any existing funds or assets if he indeed was not noticed properly.
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