n Law, Democracy & Development - Effects on the employment relationship of the insolvency of the employer : a worker perspective




The article looks critically at the Insolvency Act prior to the amendments of 2002 and the limited protection it gave workers on the insolvency of their employer. The effect of the Act was that workers' contracts of employment were automatically terminated by their employer's insolvency, leaving them with a limited preferent claim against the employer's insolvent estate. Since certain other creditors (such as the Revenue Service) ranked higher than employees, there was often little left for workers to recover.


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