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Thread: Property seizure by ex staff suing for compensation

  1. #1

    Default Property seizure by ex staff suing for compensation

    I have recently close my coffee shop. I bought the shop a year ago and took transfer of all 4 staff's long term contracts, using my S.L. Company.
    I am the administrator and there is another director, we each own 50% of the
    The staff were given 30 days notice.
    We have no money to pay them redundancy or compensation, the company has been making a loss all this time.
    The staff are now suing The S.L. company and the 2 directors/ owners of the shop. We own our home in Spain, can they seize our property in Spain and also our property in UK ?
    We thought they can only sue the company. The company has no money.
    We have no money to transfer the Spainsh property and we can't find a buyer either. We are very worried the courts will take our property and sell it for for whatever they can get to pay the ex staff compensations. We will lose everything.

  2. #2
    Senior Member
    Join Date
    Oct 2008


    Dear Sir/Madam,

    I'm afraid they can, yes.

    I will explain. You as an administrator of a failing company should have winded it up immediately on you knowing that it was failing and could not carry on trading as an ongoing concern. If you had done that in due time the responsability would have been limited to the S.L.'s assets.

    However, as you didn't and carried on trading under our laws you will now be held personally responsible of all the debts as you were one of the joint administrators. Which is probably why their lawyer has sued you as well as the company. Moreover, you may be even be held as criminally responsible depending on the case.

    If you have not being paying the Social Security on behalf of your employees it will be the SS itself who places a charge against the joint administrators assets i.e. your home, your car, your bank account, your golf club membership, stocks etc.

    Employees in Spain, more so long term employees (indefinidos), are very protected by our Labour laws.

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