| As the current economic storm continues to rage | | | | employees will be automatically terminated and |
| and the credit crunch continues we head helplessly | | | | the business will cease to trade. On the other |
| into the abyss which is the recession, | | | | hand though, if a company faces voluntary |
| employment solicitors in the south of England are | | | | liquidation, if an administrator is brought in to |
| preparing for a very busy time as employees are | | | | attempt to secure a rescue deal for the |
| looking to gauge exactly what their rights are in | | | | company, or if a business enters a Creditor |
| these troubled times. | | | | Voluntary Arrangement (CVA) then the |
| Many people are taking the precautionary steps | | | | employees do not automatically face redundancy. |
| by looking for information on their employment | | | | The Company may be able to retain key |
| entitlement and what to do should the worst | | | | employees to help with the running of the |
| happen. The head of employment law for a | | | | company. |
| leading solicitor in the south has advised that | | | | If a company is faced with losing their workforce, |
| people who do know their rights will be best | | | | then it is important for employees to grasp |
| placed if they were to loose their jobs in the | | | | exactly what to expect and what they can do to |
| coming months. | | | | protect themselves using their redundancy rights. |
| With all the financial worries that face businesses | | | | The three main areas that any employee should |
| of all sizes at the moment and the prospect of | | | | be concerned with and be well versed in are |
| many going under, employees can sometimes get | | | | damages for breach of contract, unpaid wages |
| left in the dark as to exactly what is going on | | | | remuneration and statutory redundancy |
| behind the scenes and it can come as a massive | | | | payments. |
| shock to them when they are notified of the | | | | Unfortunately for employees, some of these |
| businesses closure. | | | | debts are unsecured and therefore get pushed to |
| Many companies are currently analyzing their | | | | the back of the queue of payments. The upshot |
| books with even more interest before as to | | | | of this is that most employees will not realize the |
| where they 'trim the fat' of the business and it | | | | full amount they are owed by the insolvent |
| will be no surprise if redundancies do become | | | | employer. To recover their money they may |
| more common. However if a business does face | | | | have to bring Tribunal claims and apply to the |
| insolvency it is important to note that an | | | | National Insurance Fund for payments. |
| employee is not automatically out of a job | | | | In these troubled times it is definitely worth |
| depending on the specific procedure the company | | | | speaking to a employment solicitor to find out |
| takes in facing insolvency. | | | | exactly what your redundancy rights are if you |
| If any business is forced into compulsory | | | | are affected by these issues. |
| liquidation and court receivership, then all | | | | |