An employment tribunal has ruled that collapsed firm ABC Engineering needs to pay eight former members of staff more than £12,000 for failing to pay holiday entitlements and unauthorised wage deductions.
The Warrington-based engineering business entered voluntary liquidation in last September after accruing debts worth nearly £300,000. One month later, eight former employees made claims against it to an employment tribunal for unpaid wages, overtime and holiday entitlement.
The holiday pay entitlement ranges from two to six days and the unauthorised deductions from claimants’ wages in respect of unpaid wages and overtime range from £256 to £960.
A statement of affairs, which was compiled by liquidators and published on Companies House, revealed that the firm has £4,800 in funds held in trust that are available and tangible fixed assets of close to £26,500, however it is uncertain as to its potential availability to preferred creditors.
It also owes more than £295,000 to several creditors, including £95,000 to HM Revenue and Customs, £42,000 to Barclays, and more than £7,000 to Halton Borough Council.
The judgement stated: “The claim was issued in the employment tribunals on 26 October 2022. The respondent has failed to present a valid response on time. The employment judge has decided that a determination can properly be made of the claim, or part of it, in accordance with rule 21 of the Rules of Procedure.”
The judgement also noted that if the due claims are not paid within two weeks, they will accrue interest at 8% a year from 7 June, which is the day after the decision was sent to those involved.
ABC Engineering and its liquidators have been contacted for comment prior to publication.