Skip to Content

Insolvency Law exposed as flawed.


MP's have voiced their concerns that the laws governing insolvency are flawed.

A report's findings concluded that the present laws are in favour of investors at the detriment of workers, the report was requested following the much-publicised collapse of City Link, the nationwide delivery firm, and was a joint report from two parliament committees.

The report also found that in the case of City Link, the company deliberately hid the situation from its workforce.

The timing of the insolvency could not have been worse for its employees coming over the Christmas period, over 2500 employees lost their jobs and around a thousand contractors were affected.

The present legislation governing insolvency does not afford the protection it should to workers or a company's supply chain, whilst at the same time protects Directors and Investors.

The report found that the law at present, is structured so that it is in a company's financial best interest to break the law and flout the consultation process for redundancy, as in some situations the fine for ignoring this process is much less that continuing to trade and adhere to the law.

Especially in situations like this where the taxpayer is in effect, paying the fine.

The report highlights the need for a review, and identifies concerns that insolvency law has not kept up with changes in Employment Law.

In the situation with City Link many of its drivers and support workers were self-employed and will receive very little of what they are owed, which is largely down to the order of priority for creditors.

Image Description
related news
recent articles
Gig Economy - Rights for workers.

Hermes become the first major company to make concessions to 'Gig..

link

Litigation Solicitors | Find Litigation Solicitors at solicitors.com

Litigation Solicitors.
For details on many of the areas of Litigation a solicitors will be able to help, click here...

Modern Slavery Law

Modern Slavery Law.
Passed in 2015 by the Government the Modern Slavery Act is designed to prevent and prosecute any act of slavery, included within the act is..

Employment Contracts

Everyone who is working as an employee should have an employment contract and as with all contracts this sets out the terms of the employment, and will include..

Real Living Wage increase

Do you work for an employer that has signed up to the Real Living..

link

Employment law for Children

There are clearly defined rules about when a child can work and their hours of employment, this article sets out the laws to be followed by Employers of childre..

Social media in the work place

Social media in the work place - Staff using social media in the work place can become a problem, productivity and performance can be affected by the time spent..

Diverted Profits Tax

Diverted Profits Tax - With effect from this April, foreign companies selling to customers in the UK will be liable for UK tax on profits...

Changes to the working week?

The future will be very different for employees and the TUC aims..

link

Employment Law Solicitors for Employers.

Employment Law Solicitors for Employers. If you're the employer of people, you want excellent solicitor's representation that giving expert advice...

Intellectual Property Solicitors.

Intellectual Property Solicitors. Intellectual property is your protection against something you have created/invented and its use; there are four areas of Inte..

Compromise Agreements

When your employment has concluded or if you have a dispute, it is quite normal for both parties to agree to enter into an agreement that sets out terms and con..

Image Description
Is there anything wrong with this page? - any amendments will receive accreditation - email us

Solicitors.com are not a firm of solicitors, and any content on the site should not be used in substitute for obtaining Legal advice from a solicitor regulated in the UK, Solicitors.com recommends that you contact a firm of solicitors to discuss your individual legal requirement. Whilst we strive to bring you accurate up to date content, all content on this site is not legal advice and is not guaranteed to be correct. Use of this site does not create a client relationship.

Information by area of law
Back to top