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If your employer is ‘insolvent’ this means it can’t pay its debts. As an employee you have rights if your employer is insolvent and can make a claim for any money you are owed. Moon Beever can help you enforce those rights.

If you work for a company that is insolvent it can mean a number of things:

  • administration - where your employer asks an ‘administrator’ to come in to try to keep the company going
  • liquidation - when a company is closed and its assets are sold to pay the people it owes money to (creditors)
  • receivership - like liquidation but it’s usually arranged by a single creditor that’s lent money securely (for example a bank), and the assets are sold to pay just that creditor
  • voluntary arrangement with creditors

The business might keep running if there’s a chance it can be rescued or sold. If this happens, as an employee you might be asked to continue working. This doesn’t affect your rights to redundancy pay if the business closes down later.  If the business is sold then you may have rights under the TUPE rules.

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