"You've been brilliant!"
Terminal insolvency proceedings
If the insolvency proceedings are aimed at liquidating the assets of your employer, the protections under TUPE are very limited. Such proceedings are likely to include bankruptcy of an individual and compulsory or creditors’ voluntary liquidation of a limited company.
If your employer is subject to any of these proceedings:
- Your employment will not automatically transfer from your employer to the buyer; and
- Any dismissal will not be automatically unfair even if the reason for it was the transfer.
Removal of these protections under TUPE will not prevent a buyer from deciding to employ you but it does mean the buyer could make changes to your contract of employment for whatever reason (subject to your agreement)
Non-terminal insolvency proceedings
If your employer is subject to insolvency proceedings that are not intended to liquidate the assets you will have greater protection.
- will automatically transfer with the terms and conditions of your employment from your employer to the buyer.
- will be entitled to protection against certain dismissals which may be automatically unfair.
- may be entitled to recover some or all of some debts owed to you by your employer from the Secretary of State and the National Insurance Fund (NIF).
- may be forced to accept changes to your terms and conditions of employment imposed by the buyer.
National Insurance Fund
Depending on your circumstances, you will be able to recover from the NIF certain payments not paid to you by your employer:
- Up to eight weeks’ outstanding pay (subject to a weekly pay cap which is currently £450).
- Up to six weeks’ unpaid holiday pay (subject to the weekly pay cap).
- Payment of the statutory minimum notice period (subject to the weekly pay cap).
- Payment of a basic award (if ordered by an employment tribunal) or statutory redundancy payment.
- Payment of up to 12 months’ unpaid employer and employee pension contributions.
- Apprenticeship fees.
Payments from the NIF are subject to deductions for tax and national insurance where appropriate.
To make a claim you must complete Form RP1.
Permitted changes to terms and conditions of employment
Where an employer is subject to insolvency proceedings the employer, buyer or insolvency practitioner can make some changes to your terms and conditions of employment. The changes can be made without your consent providing certain procedures are followed.
The changes must be made to safeguard employment opportunities by ensuring the survival of the business or undertaking (or part of it).
Book a phone consultation
Apply for a FREE phone consultation with one of our employment law solicitors to discuss your case, how we can help and find out how much it is likely to cost.
Selected evening and weekend appointments available.
Tell us about your case
Our online form is the easy way to tell us about your case and employment details.
Short of time? Our ‘save and resume’ feature lets you save your answers and complete the form later.
Reasons to Choose
Expert help from Solicitors
Jargon Free Advice
Convenient Easy Access
Best Client Care
Becoming our client is a straightforward process. However, before choosing Quantrills as your employment law solicitors you and us will want to be completely sure we are the right people to help you achieve your objectives. Having looked at our web site, if you like our approach and would like to discuss how we can help you, getting started is easy.
At Quantrills we are flexible in how we work with you and how we progress your case...
We welcome calls from our clients. Call us any time between 08.30AM to 5.30PM Monday to Friday to discuss your case. We will do our best to speak with you when you call, or if we can’t, you will get a call back as soon as possible.
01473 688 100Or request a call back
If it’s more convenient for you do come and see us. We do an excellent coffee. Whilst many of our clients don’t visit us, our offices are easy to find being just off junction 56 on the A14. Client meetings are by appointment and there is free car parking in front of our reception.Get Directions
We love emails; they help save time and avoid delays. Our case management system is set up to make the best use of them.Email us
Our web forms make it easy to give us the information we need from you. Our forms have a clever "save and return" feature so you can complete the form in more than one visit.View Forms
Latest Employee Knowledge Bank Articles
Use our knowledge bank of employee focused briefing notes, checklists and case reports to obtain trusted and accurate information about key employment law and HR topics to help you learn more about your employment law rights.View more