T&G calls for insolvency law overhaul
The UK's biggest trade union has slammed the government, calling for an overhaul to insolvency law just one week before new legislation comes into force.
The UK's biggest trade union has slammed the government, calling for an overhaul to insolvency law just one week before new legislation comes into force.
Link: TUC defends high street firms
The T&G said the government has left open a crucial loophole and it will now demand fresh changes to get ‘justice for its members’. A T&G spokesman told Accountancy Age that the union intended to take its complaints to the Labour party conference.
The union claims the loophole allows the owners of a troubled business to put itself into voluntary liquidation, acquire its assets and start a new business under a different name.
Sir Bill Morris, general secretary of the T&G, spoke about the legal loophole on Monday when he addressed the TUC conference in Brighton. He referred to the Friction Dynamex case, a long-running dispute in which 86 of the union’s members were sacked in 2001 after striking for eight weeks. An employment tribunal ruled that the staff had been unfairly dismissed and ordered Friction Dynamex to pay the workers compensation.
The company has since been put into voluntary liquidation. Morris said: ‘If that’s not justification for fundamental reform of the law on insolvency then, what is?’
The insolvency service declined to comment.
The numbers you crunch tell a story. Your expertis...
21yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleBody Shop, Ted Baker, Farfetch, MatchesFashion and Wilko among latest retailer insolvencies. Number of businesses in trouble are the highest in five y...
View articleInsolvency statistics in the UK for the second quarter of 2023 were the highest since 2009 with 83% of them relating to small businesses Read More...
View articleThere were 6,342 recorded company insolvencies in Q2, reflecting a 9% increase compared to the number of insolvencies in Q1, and a 13% increase compar...
View articleThe survey paints a “brightening” picture of the global economy, according to the ACCA Read More...
View articleThe pandemic may have “distorted” some economic data Read More...
View articleAdvisory firms must offer a “more supportive” and holistic approach to clients amid the economic downturn Read More...
View articleHaving a clear plan and clean data to help optimise the use of scarce resources will be key for businesses Read More...
View articleThe Coronavirus Job Retention Scheme has supported millions of jobs amid the pandemic, but with the support measure set to end in September, how can a...
View article