My boss has gone AWOL and left me to manage his company

While the idea of a manager-free workplace might seem like a dream to some, be careful what you wish for.

For this week’s Money Problem reader, Chloe, it’s become a real-life nightmare, after her boss went incommunicado and left her at the helm.

The 28-year-old yoga teacher from York has now been managing the company in his absence for the last nine months — and it’s no mean feat.

Struggling to keep things afloat with no input from the studio owner, but still keen to keep hold of her job, she reached to to Metro consumer champion, Sarah Davidson.

The problem…

I’m a freelance yoga instructor and one of my most regular gigs is with a small privately owned studio, where I teach 12 classes a week. My income from them makes up the bulk of what I earn every month so I really need the work.

But about nine months ago the studio owner had a bad accident and he’s still in recovery. He’s not able to manage the business, so I am trying to keep things going along with another instructor. We’re managing to keep classes running for members, most of whom are on annual memberships and have already paid for the year.

The problem is that we’re aware that the studio is getting final payment notices for bills like water and energy. We’re still being paid, though not always on time. We’ve also lost several of the other instructors and it’s becoming a lot harder to cover all the classes that are needed.

Normally, the studio owner would authorise hiring a new teacher as he’s the one who holds the business insurance. Obviously, this is really key as there’s always the possibility that someone could hurt themselves in a class. But he’s not answering our calls, he won’t engage with anyone from the studio. To be honest, we don’t even know if the business insurance is still being paid. All the teachers have their own insurance but I don’t know if that’s enough.

I really need the income from this job and I know a lot of the members really well and don’t want to let them down. But I’m really worried about the situation and don’t know what to do?

The answer…

Oooof, this is a really tricky one. You’re trying to be loyal, protect your income and do the right thing by members, but this is not the way to do it, I’m afraid.

Hard as it is going to be, you need to take some formal steps to protect yourself right now.

You’re freelance and this isn’t your company. Your relationships with members are not the same thing as their relationship to the company. And you’re taking a massive professional and personal risk by continuing to teach in these circumstances.

Let’s break it down.

Right now you’re effectively running a business without the authority, information or protections that should come with that.

The biggest problem you’ve got isn’t the late payments or staffing stress, it’s not knowing whether the business is insured.

If the studio’s public liability insurance has lapsed and someone is injured, the consequences could be serious – even if you hold your own insurance.

Most instructor policies cover your teaching but they often assume the venue itself is properly insured and compliant. If the studio isn’t insured or is operating unsafely, insurers can dispute claims.

And while you don’t need to panic, you do need clarity.

You and your fellow instructors need to lay out the situation to the business owner in writing – either by email or by recorded delivery letter.

I’d suggest saying something that confirms classes are still running in good faith but that you need written confirmation from him by a specific date that business insurance, utilities and basic obligations are being maintained.

Make it clear in this correspondence that if you don’t receive confirmation by that date, you can’t responsibly continue teaching or organising cover.

This isn’t an ultimatum, it’s a professional boundary. If he’s medically unable to respond, that in itself tells you something important about the viability of the studio.

In the meantime, stop dealing with any management issues immediately. Make absolutely sure you keep written records of payments, late payments and any messages you’ve sent raising concerns.

Given how dependent you are on this income, I think you also need to start looking for alternatives to replace it – even if things here get sorted out.

It’s time to be honest with yourself about this. Nine months is a long time, and although businesses can survive temporary disruption, this sounds like a studio in serious trouble. Losing instructors, unpaid bills and an absent owner is almost certainly going to end either in closure or a sudden collapse.

Caring about members and wanting to do right by them doesn’t mean sacrificing your own security or safety.

If you do decide to leave, you can do it kindly and professionally.

The responsibility for the studio’s situation is not yours, even if it feels that way right now.

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