Compromise Agreement not upheld

I was recently made redundant because our company is closing. I agreed to back date the date of redundancy to help the company out financially - ie so they didn't have to pay PAYE etc. I have continued to work for the company during this time, based on a compromise agreement they gave me. They are now saying that there isn't enough money to pay this, however there is enough money to pay all the other creditors.

Can anyone advise where I stand legally with this as they are prioritising everyone over me?

Thank you

You will need legal advice - this cannot be resolved online. A lawyer needs to see the compromise agreement terms. What you are describing here is highly irregular if you have remained an employee of the company, and I am not even convinced it is legal! Certainly, I think HMRC would have something to say about this arrangement, and I doubt it would be anything good. If the terms of the agreement are not lawful, then the agreement is null and void anyway. On what basis did your legal advisor suggest you sign such an agreement? Beacuse I have to say, I cannot imagine any circumstances in which I would advise a client to sign such an agreement.

Thanks for the response. As far as I know it is a legally binding contract. In order for them to get around the fact I was still working for them they gave me a consultancy contract valued at £1k. As I do the book keeping for the company I know that there is money in the company to pay my agreement, however if they pay me it means some of our creditors don't get paid. It's all a bit of a mess really, and I'm not sure that going after them is going to achieve anything if they are closing the company anyway. They would just declare themselves bankrupt I assume? It just seems unfair that I lose out and no one else.

Whatever you have been told you have entered into a very dodgt agreement - and an unlawful agreement is not legally binding! It may not be unlawful, but it is certainly dodgy at best. Redundancy (nor any other form of termination) cannot be "backdated", and to backdate it is tax evasion, at the very least on the employers part. But you now have a double whammy - the comprom ise agreement is nothing to do with employment law as such now. You are simply another creditor, and your place in the line for payments is determined not as an employee (who are first in line) but by the status of the owed debt. I can only repeat, this is an agreement I would never have advised a client to sign.