Harry Monk:
I think Amazon have slowed down a fair bit in the last year which has probably had an impact on turnover. Additionally many hauliers are heavily financed and interest rate rises may also have had a negative impact.
Correct I know a company local to me who pull loads for Amazon , booming over Covid and for the following 18 months but not so much now luckily for them not all eggs in one basket but they have had to lose trucks and some drivers .
I deliver into Amazon Avonmouth Swansea and Swindon occasionally and recently I have been straight in on a bay and tipped within 1/2 hour max with only me on 1 occasion in the drivers room other times just me and a couple of others .
Looks like Amazon has platued
njl:
Would I be right in thinking LTD drivers could be invoicing monthly and then taking 6 weeks or more to get paid? Or is that just more common for subbies?I’ve had to claim back lost pay once when the firm went under when I was paye, doubt there is any protection for business to business.
I think it would depend on whether they are ltd through an agency, or ltd contracting to Cross direct. If the former, then typically you submit your invoice by the end of the following Monday and the money is in your ltd account on the Friday of that week, same as the PAYE/brolly agency folks, but if invoicing Cross direct then in most cases in haulage it is the client who dictates the payment terms, which could be anything up to 3 months. If they are invoicing Cross direct then they won’t even see that money now.
DCPCFML:
njl:
Would I be right in thinking LTD drivers could be invoicing monthly and then taking 6 weeks or more to get paid? Or is that just more common for subbies?I’ve had to claim back lost pay once when the firm went under when I was paye, doubt there is any protection for business to business.
I think it would depend on whether they are ltd through an agency, or ltd contracting to Cross direct. If the former, then typically you submit your invoice by the end of the following Monday and the money is in your ltd account on the Friday of that week, same as the PAYE/brolly agency folks, but if invoicing Cross direct then in most cases in haulage it is the client who dictates the payment terms, which could be anything up to 3 months. If they are invoicing Cross direct then they won’t even see that money now.
Sounds right to me.
Anyone working for an agency, but at a transport co that folds, will get all their due pay as normal. Their contract is with the agency, not the transport company.
The agency might not get paid, but that is a risk of their business, not a risk of drivers supplied by them.
Franglais:
Sounds right to me.
Anyone working for an agency, but at a transport co that folds, will get all their due pay as normal. Their contract is with the agency, not the transport company.
The agency might not get paid, but that is a risk of their business, not a risk of drivers supplied by them.
When I was on the agency they had a lot of drivers on for Canute and they pulled them all out about a month before Canute went bust, it seemed in hindsight that they knew it was on the cards. There were no rumours circulating at the time that Canute were in trouble but it seemed that somehow the agency had seen the writing on the wall.
Harry Monk:
Franglais:
Sounds right to me.
Anyone working for an agency, but at a transport co that folds, will get all their due pay as normal. Their contract is with the agency, not the transport company.
The agency might not get paid, but that is a risk of their business, not a risk of drivers supplied by them.When I was on the agency they had a lot of drivers on for Canute and they pulled them all out about a month before Canute went bust, it seemed in hindsight that they knew it was on the cards. There were no rumours circulating at the time that Canute were in trouble but it seemed that somehow the agency had seen the writing on the wall.
Presumably the agency would have been running credit checks on their clients? And any late payments on earlier invoices would also have had set some bells ringing.
When I started driving a desk a “back office” manager asked about some of the work I was taking on. It was for an old established company that was starting to sub work out to us, and his antenna were twitching. We turned down lots of the work offered, but the calls got even more frequent.
Couple of months later they went pop, but didn`t owe us too much.
The “unsecured creditors” at the bottom of the list includes anyone who provided a service as well as goods.
The assets will be sold off and there will likely not be much there, since most will either be rented or leased. In my experience, the first suppliers to stop credit were the fuel companies. They insisted on payment in advance for any deliveries. Wages and redundancy are high on the list, even before HMRC, so if there is any money in the kitty, they will get paid. There is a government fund to make up for any shortfall so individuals do not suffer too much.
Depending on your situation, you can apply to the government for:
a redundancy payment
holiday pay
outstanding payments like unpaid wages, overtime and commission
money you would have earned working your notice period (‘statutory notice pay’)
gov.uk/your-rights-if-your- … -insolvent
Harry Monk:
Franglais:
Sounds right to me.
Anyone working for an agency, but at a transport co that folds, will get all their due pay as normal. Their contract is with the agency, not the transport company.
The agency might not get paid, but that is a risk of their business, not a risk of drivers supplied by them.When I was on the agency they had a lot of drivers on for Canute and they pulled them all out about a month before Canute went bust, it seemed in hindsight that they knew it was on the cards. There were no rumours circulating at the time that Canute were in trouble but it seemed that somehow the agency had seen the writing on the wall.
The agency “somehow had seen the writing on the wall” = a few months of unpaid Canute invoices = “don’t send any of our drivers in there until they’re paid”.
stu675:
I don’t understand how a 200 trucks :117 employees ratio could ever be efficient.
Too many Self-employed contractors maybe?
peirre:
Franglais:
njl:
I’ve had to claim back lost pay once when the firm went under when I was paye, doubt there is any protection for business to business.As I read it, cash goes first to
1 Secured creditors with a fixed charge; such as Banks holding deeds to buildings for mortgages etc. Lease holders of vehicles, if they aren`t owned outright.
2 Preferential creditors. Wages for employees.
3 Secondary preferential creditors. HMRC.
4 Secured creditors with floating charge; such as suppliers of goods.
5 Unsecured creditors; various but this group includes contractors.
6 Shareholders.So any LTD would be way down the list.
It doesn`t matter at this stage what the management want, it is the Administrator who now will follow all the rules.The taxman and Vatman are the 1st in line to get paid
Pierre, that’s just not correct. Franglais has the order almost correct [emoji6] he just missed out the costs of liquidation, which are after fixed charges but before preferential creditors (wages and redundancy etc.)