Insolvency

Where an employer is insolvent an employee who is owed money can usually make a claim to the Department for Trade and Industry. However, for an employer to be insolvent there has to be a winding up order, administration order or resolution passed for a voluntary winding up. In the absence of any of these the employer is not insolvent and claims for unpaid wages have to be made to the employer or any receiver appointed. If all that has happened is that a provisional liquidator has been appointed then there is no right to claim from the state.

* Secretary of State for Trade and Industry v Rawbone EAT/1255/00