Monday 17 October 2011

Options if your employer is going to be declared insolvent


Even if your employer cannot pay you, they might want you to carry on working for them while they try to sell the business. If you continue working and your employer's business is transferred, your employment rights are protected, including any pay that is owed to you. The relevant legislation in the UK is Transfer of Undertakings (Protection of Employment) Regulations (TUPE) 


Lay-off

It is possible your employer is not officially insolvent but they still cannot pay you. In this case, they could be forced to lay you off or put you on short time.


Working for an administrator, receiver or liquidator


Sometimes a business may keep running if there is a chance that all or some of the business can be made workable or be sold on to a new owner.


If this happens, you may be asked to continue working. This does not affect your rights to redundancy pay if the firm closes down later.

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