Also in the news...
Bond Support Scheme
Find out about the Bond Support Scheme - how it works, its benefits and how to apply.
UK and African business leaders arrive in Togo to create trade and investment deals
The event brings together delegations from ten African nations alongside leading UK companies and investors to advance partnerships that promote economic growth and jobs.
Countering sanctions evasion: guidance for freight and shipping
For freight forwarders, carriers, hauliers, customs intermediaries, postal and express operators, and other companies facilitating the movement of goods.
International Compliance Tips for Entrepreneurs Going Global
While expanding across borders can accelerate business growth, it also raises the stakes when it comes to staying legally compliant.
Cutting Administrative Burdens When Trading Abroad
From customs declarations to inventory tracking across borders, the paperwork and compliance requirements can quickly become overwhelming for growing companies.
For Employees – what if your Employer goes Bankrupt?
What happens if your employer goes bankrupt? Is there a process to ensure that you are looked after or will you have to wait for payment along with other creditors?
Voluntary bankruptcy
When a company files for bankruptcy in court in order to protect its assets while it reorganises, the general procedure is that the company is required to make a disposition of its assets and use the cash to pay off creditors. Taxes come first, followed by employee obligations, then outside creditors and lastly the shareholders. So as long as the bankruptcy was voluntary and your employer has a reasonable level of assets, you will probably receive outstanding salary although you may have to wait for a while for it to be paid. You would also expect to receive severance pay.
Forced bankruptcy
Where creditors force a company into bankruptcy it is unlikely the company will have sufficient assets to pay employees. Of course you can sue but the amounts could be small, your costs high and the wait lengthy.
The implication therefore is that if you find out your employer is in some distress, you should make sure that you are up-to-date with taking your holidays and all financial claims such as expense reimbursements are made. In short, taking sensible actions to lessen any impact on your personal finances.