Quote:
Originally Posted by Unregistered
However, I'm not so sure whether a previous employer of A company closes it down, then opens B company, will absolve him of all liabilities of A company. Unless the fella has declared bankrupt.
Since the original poster has an employment contract and pay slip on hand, I think he does have a case against this employer. I am a HR practitioner and I can say according to the Employment Law, all these deductions from his company are illegal. He should have a talk with MOM and see if MOM will be able to assist him to recover some of these money back. |
It doesn't matter at all. Remember these squad sized recruitment companies aren't real companies with physical goods, real estate, equipment or IP. They are merely a legal construct set up by a few people.
For e.g. 4 guys working in Michael Page decide to set up a new company. They nominate 1 guy to be the MD and effective sole shareholder (i.e. get another random person to front $1 share). Then you run your business and have an internal company contract that dictates the sharing of expenses and commissions.
So let's say after a while because of bad luck some candidate not happy CSI make noise demand payments, send lawyer's letters,
MOM officers etc. Usually they don't even care, but for arguments sake lets say the heat gets too hot. What do they do? Simple, close down the company.
Out of the 4 guys, maybe 2 decide to move somewhere / setup own company then another 3 new guys join in. The new cluster of 5 guys register a new company and get yet another guy to be the "MD" and sole shareholder. Rinse and repeat.
They can do this infinitely because new people are coming and going all the time and agencies don't really require anything much, just laptop and phones and office lease which can be easily novated. Spending truckload of money and time on pursuing a 2k payment just isn't going to work.
MOM largely plays a mediator role even if it concerns employment act. Real sizable companies give them face because they would like to do business in the future and don't want to piss of the gov, but dealing with a loose network of individual 1 man show companies, there isn't much they can do.
They won't initiate legal action and pay the cost of recovery for you. In the end you end up sending hours after hours and fees after fees just to hopefully reach a settlement where they pay you half of your 2k.
So back to my original advice, let it go and move on with life.