Redundancy cheque given not allowed to cash it

H

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Hi

I was made redundant on the 30th September and was given my redundancy cheque last week on the 7th Oct and the company asked me not to cash it until they gave me a shout this week they were releasing funds and expecting a payment they just needed a little time so I said fine.

Now got a call today saying blah blah blah they had been hit with legal proceeding for unpaid rates from last year and another unpaid vat from sept so that has now taken precedence and the money they had hoped to release for us (me and 3 others) on Monday will be used to clear this up and we are next on the list, he said that it is their intention to pay us now even beofre they pay the wage bill at the end of the month and that we will have our money no later than the 3rd Nov.

What should I do I have enough money to cover myself until mid Dec but then will need this do I go ahead and lodge the cheque knowing they must have money cleared to cover the above costs or do I give them the benefit of doubt and wait until the end of the month hoping nothing else trumps my money - any ideas/suggestions? I know I can apply to the SW fund for the money but I can't wait that long another month yes but no more?
 
If someone issues you with a cheque they must do so knowing they have funds in their account.
You should lodge the cheque in my opinion. They may be fobbing you off, they may have the funds but not wanting them going on your redundancy as they want them for something else.
 
I would lodge the cheque and let it bounce.

You will then have concrete proof if you need to take a case against them. As far as I know, it is fraudulent for a company to issue a cheque knowing there are insufficient funds to meet it.
 
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Hi

Is this for statutory redundancy or for additional redundancy.

Most companies are finding it tough going. I think you should help out your former employers and your former colleagues and hold the cheque, especially if it's for statutory redundancy. If that bounces, you will be paid by the state.

If it's for an ex-gratia payment, you have to decide if there is a significant risk that the company will go to the wall before you cash the cheque.

Brendan
 
Why should the OP wait for his money just so the VAT-man can get his?

The company can fill out a form to arrange for the 60% redundacy reclaim to be paid directly to Collector General.
 
it is a statutory redundancy cheque for 10 years of loyal service - I am so annoyed about how everything has been handled not only was I there longer than a lot of people and I was only on a 4 day week by choice so earning less than others I thought there was at least 2 or 3 people ahead of me to be let go (not that I wish it on anyone we all do the same job so I though last in 1st out at this stage) and yet I was let go with a reason of lack of workload nothing else no formal reason or back up to why it was me over anyone else so this is just the icing on the cake.

I know I can apply to the state for the funds but my fear is that will take tooo long and it will leave me in a lot of trouble I know they are due to pay wages this day 2 weeks so they will have to have money for that so do I try to cash the cheque before then I know someone in the back says 7 working days to clear a crossed cheque from one bank to another but I know they are going to pay wages before our cheques otherwise there would be a riot in there but it would mean they have the money but have choosen to use it for something else.

I can afford to wait another month although I shouldn't have to and the industry is so small that I don't want to burn bridges so I gues I am stuck its either wait a couple of extra weeks in the hopes the are telling me the truth that they wil pay us or go to the state and wait months. :( you would think after 10 yrs you would be owed some loyality or truth but you are obviously just a number at the end of the day its not a good feeling
 
When you decide to lodge the cheque to your account, go to the actual branch of the bank where the cheque is drawn from, therefore the money will be gone out of their account quicker, it will take longer to get to your account but you would be surer of geting the money (if there is any there to get).

Best of Luck, can't be easy, you have enough of worries after being made redundant in times like this without the stress of this as well.
 
The general consensus seems to be that I should just lodge the cheque I suppose the worse case scenario is that it bounces and I have to get another one off them (cannot affrod to wait for the SW fund) so I was thinking over the weekend I know wages are due to paid at the end of next week Friday 29th Sept so presumly they should have money to cover this in their accounts by Wednesday/Thursday of next week so on that basis I think I will lodge the cheque - does anyone know how long it takes a cheque to clear its coming from a BOI and lodging to a Ptsb account I have heard anything from 5 to 7 working days so I need to time this as best I can in the hopes that it clears.
 
For the best chance I would (photocopy the cheque first or at least write down the a/c no, sort code, cheque no etc) go on thursday afternoon to the bank where the cheque was drawn and lodge it there to your PTSB a/c (I would also push my luck and ask if there are funds there to meet this cheque all they can say is yes or no or we cannot give that information). I would allow at least 10 working days for it to clear and I would then go into my own bank and ask there if it has cleared and if they can guarantee you that it won't be bounced at that stage.

You've waited so long now you need to have every best chance at clearing it, you might only have one chance at this.
 
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