Although there are different types of insolvency, an organisation usually becomes insolvent because their debts exceed the value of the company’s assets or the company does have enough finance to cover its debts. Terms associated with insolvency include Administration, Liquidation or in the instance of a partnership or Sole Trader, Bankruptcy. Individuals working in an insolvent company may be entitled to Redundancy Payments.
Employees - Your rights if your employer is insolvent
The Agency’s Enquiry Point is available to employers, employees, trade unions and others. Enquiry Point advisors provide information and advice on a wide range of employment matters. The Enquiry Point is also an important contact point for identifying circumstances, or clients, who would benefit from being referred to other Agency services.
The Enquiry Point provides clear, confidential, independent and impartial advice to assist the caller in resolving issues in the workplace.
While the advisors cannot provide a legal opinion they can help callers gain a better understanding of their rights and responsibilities as well as identifying possible options to help resolve their issues.