Winding up the business

Where there is no realistic hope that a business can be revived or maintained as a going concern and an insolvency practitioner has been appointed with a view to the liquidation and sale of the employer’s assets, regulation 4 (terms and conditions) and regulation 7 (dismissals) do not apply (regulation 8 (7) TUPE).

Where the transferor is insolvent and there is no TUPE transfer to a new business, wages and other sums owed to the employees can be claimed from the National Insurance Fund, although the amounts paid are subject to a statutory cap. See Chapter 11, page 369 for information about claiming outstanding wages and other payments in an insolvency situation.