Most employment practitioners will have dealt with redundancies and TUPE issues following a company going into administration. This week’s File on 4 was an interesting look at whether the current insolvency regime might not be counter-productive in the current downturn.
The 2003 Enterprise Act was designed to make going into administration easier, quicker and cheaper with the aim to help companies and save jobs. But BBC File On 4 has heard claims that it is now easier for failing companies to dump their debts leaving thousands of creditors and suppliers owed millions of pounds they may never recoup. Julian O’Halloran asks if UK insolvency law could deepen the economic downturn instead of bringing about a recovery.
The programme is available through iPlayer and as an mp3 podcast download for the next week.