What are the Employee Rights During the Liquidation of a Company in the UK

1. What are the Employee Rights During the Liquidation of a Company in the UK During the liquidation of a company in the United Kingdom, employees have certain rights and protections. These rights are primarily governed by the Insolvency Act 1986 and the Employment Rights Act 1996. Here are the key employee rights during the liquidation process: Redundancy Pay: If an employee is made redundant due to the company's liquidation, they are entitled to statutory redundancy pay based on their length of service. The amount of redundancy pay is calculated based on the employee's age, length of continuous service, and weekly pay, subject to a maximum statutory limit. Notice Period and Pay: Employees are entitled to receive notice of termination of their employment. The length of the notice period depends on their employment contract or statutory requirements. If the company is unable to provide the notice period, employees are entitled to receive pay in lieu of notice. Unpaid Wages and Holiday Pay: Employees have a right to be paid for any wages, salary, commission, or overtime they have earned but not received before the liquidation. They are also entitled to any accrued but unused holiday pay. Employment Tribunal Claims: If an employee believes that their employment rights have been violated during the liquidation process, they have the right to make a claim to an employment tribunal within the specified time limits. This includes claims for unfair dismissal, unpaid wages, redundancy pay, and other employment-related claims. Consultation and Information: In certain cases, the company is required to consult with employee representatives or trade unions regarding the proposed redundancies or

2. significant changes to employment conditions. This consultation process allows employees to provide their views and suggestions to mitigate the impact of the liquidation. Transfer of Undertakings (Protection of Employment) Regulations (TUPE): If the business or part of the business is sold or transferred to another company during the liquidation, employees may be protected under TUPE regulations. TUPE ensures that their employment contracts, terms, and conditions are transferred to the new employer, providing continuity of employment. It's important for employees to stay informed about the liquidation process, attend meetings or consultations organised by the liquidator or administrator, and seek legal advice if they have concerns about their rights or entitlements.