FROM CORONAVIRUS, TO INSOLVENCY, TO REDUNDANCY

Posted by Paul on November 24th, 2020

What can employment lawyers say to workers if, due to the coronavirus crisis, a business becomes insolvent kkkkcuts jobs?

 Jobs are at risk if a business or organisation cannot pay its bills. If this happens, it can go into insolvency or administration. The coronavirus crisis is making this more likely. According to a November 2020 survey by the Office for National Statistics, two-thirds of all UK business have a low to severe risk of insolvency.

 So, what would an employment lawyer advise an employee if their business was faced with insolvency? The relevant law would be employment law and also insolvency law. Legal advice would include that a worker can have different employment law rights depending on whether the employer:

• makes employees redundant,
• keeps the employee working or
• transfers the employee to a new business and employer.