CHAPTER 76

EMPLOYMENT LAW AND INSOLVENCY

December 2013

76.1 Introduction

This chapter provides guidance and advice in relation to the interaction between employment law and insolvency law.  The guidance mainly concerns the insolvent as an employer, but also touches upon certain effects on the bankrupt as an employee.

The chapter also gives an overview of some general aspects of employment law though, given the relative complexity of that area of legislation and case law, it is a necessarily summary view.

The chapter is divided into two parts, as follows:

Part 1 – Employment law – general background (paragraphs 76.2 to 76.36)

Part 2 – Employment Law and insolvency proceedings (paragraphs 76.37 to 76.63)

The chapter contains the following abbreviations:

ACAS – Advisory, Conciliation and Arbitration Service

IPA – income payments agreement

IPO – income payments order

IVA – individual voluntary arrangement

CVA – company voluntary arrangement

PIQ – preliminary information questionnaire

RPS – Redundancy Payments Service

[On to Part 1 – Employment law – general background]