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    Employee rights company liquidating

    The Insolvency Payments Scheme is a scheme to protect pay-related entitlements of employees whose employer has become legally insolvent as defined in the Scheme.

    Under the Scheme, employees may claim - - arrears of pay, holiday pay, pay in lieu of statutory notice and various other entitlements that may be owed to them by their employer.

    In addition, the term "liquidation" is sometimes used when a company wants to divest itself of some of its assets.

    This is used, for instance, when a retail establishment wants to close stores.

    If you are a sole trader the process is quite straightforward.

    You simply cease trading and inform your clients and suppliers that you are no longer in business.

    Liquidation is the process of winding up a company so that it no longer exists by using its assets to pay its debts.Generally employees are not given any statutory notice. In the short term the liquidator may retain some employees in certain parts of the business.This could be where the business requires manpower to help wind down part of the company such as a manufacturing plant.The affect on employees of Company Liquidation is often redundancy.If jobs are lost then redundancy money should be received. Jobs may be saved if parts of the company can be sold. Once a Liquidator is appointed one of the first jobs they undertake is to make the employees redundant.

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