Both require a detailed consideration of the rights of the employees and the most cost-effective manner of dealing with the same. There may be issues related to redundancy procedures, TUPE, and changes to employment terms involved in any decisions to change the way in which the business is operated.
When a business is in financial difficulty detailed consideration needs to be given to the rights of the employees. A potential company insolvency involves many complex and potentially difficult issues for all the parties involved in particular in relation to the employer/employee relationship.
Directors of a failing business need to understand their duties and the limits of any potential personal liability. Insolvency practitioners must keep within the scope of their powers.
