Commentary

(c) Effect on employment contracts of insolvency events

Division AII Contract of Employment
| Commentary

(c) Effect on employment contracts of insolvency events

| Commentary

(c)     Effect on employment contracts of insolvency events

The effect on employment contracts of insolvency events is a difficult area with some conflicting authority, but in summary:

If a there is a winding-up order or a receiver or administrative receiver is appointed by the court then the contract terminates automatically. (There may however be a transfer of the undertaking to the liquidator or receiver and/or a further transfer on from the receiver which will serve to continue the employment (see para [452] ff).

Otherwise, insolvency events do not serve to automatically terminate the contract. There may be termination if the

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