Insolvency and Termination of Contracts of EmploymentPosted in : Supplementary Articles NI on 29 September 2010
This article sets out the law in relation to the various forms of insolvency and the impact they might have on employment status.
In an insolvency situation, much confusion surrounds the continuing employment of the Company’s employees. Whether their jobs will be affected by the Company’s insolvency depends on the type of insolvency process.
In basic terms, a company is insolvent if it cannot pay its debts as they fall due and/or its liabilities are greater than its assets.
There are several types of insolvency proceedings and the effect they have on the continuing employment of a Company’s employees is described briefly below:
The purpose of administration is to
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This article is correct at 06/08/2015
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