Employment may be terminated if Bankrupt!

S

Samwise1

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We moved back to the UK 2 months ago, and do not intend to return to Ireland.
My other half has just secured a job with an IT company that is not a financial institution (doing help desk support.)

We were reading through the contract and saw this-

TERMINATION

The Employee's employment hereunder may be terminated:

(c) by the company summarily without notice and without payment of remuneration in lieu of notice should the employee become the subject of a bankruptcy order or an interim order under the Insolvency Act 1986.

I was under the impression that bankruptcy would not affect your job, as long as it was not a high profile job, or a financial institution.

I am quite worried, as although we have not gone down the route of bankruptcy yet, it is looking like we will have to at some point.

Any advise welcomed please.

thanks
 
Hi Samwise, I was reading back through your previous posts so know your situation.
Maybe with your other half's new job in the UK, things might be beginning to look better for your family and bankruptcy mightn't be necessary for you any more.
There are some other UK debt settlement options, that aren't full out bankruptcy.
Don't know where your Irish property is, but if it is in the capital it mightn't take that long to come back from negative equity territory.
Another thing is that the UK PAYE system allows you earn £40000 per year in the lower tax band, compared to €33800 here in Ireland, so the UK might be a more favourable place to work.
Just saying take a step back and re-appraise your overall situation. And best wishes with everything.
 
I don't know about UK employment law, but if they wish to specify that they do not want to employ bankrupts, I presume that is their right.

She could seek to have this clause removed from the contract. They might remove it.
Your wife could look for a job elsewhere.
Or she could just accept the job. If she does go bankrupt, then she will just have to hope that they don't enforce it.

Brendan
 
RichInSpirit said:
Hi Samwise, I was reading back through your previous posts so know your situation.
Maybe with your other half's new job in the UK, things might be beginning to look better for your family and bankruptcy mightn't be necessary for you any more.
There are some other UK debt settlement options, that aren't full out bankruptcy.
Don't know where your Irish property is, but if it is in the capital it mightn't take that long to come back from negative equity territory.
Another thing is that the UK PAYE system allows you earn £40000 per year in the lower tax band, compared to €33800 here in Ireland, so the UK might be a more favourable place to work.
Just saying take a step back and re-appraise your overall situation. And best wishes with everything.
Click to expand...

Thanks for your reply,
I think we might start looking to see what other options are out there as an alternative to bankruptcy.

Our property is in County Galway, so would take longer than any cities to come back up to what we paid for it. If am honest, I think we will be pensioners or long gone before our property ever reaches what mortgage we have on it!

Thanks also for your best wishes.

Thanks
 
What is the rent?
What are the repayments?
What is the mortgage amount outstanding?
What interest rate are you paying?
 
Samwise,

I just had two clients who both had these clauses in their contracts. They spoke to their employer and explained the situation. The employer was great, said it didn't matter and even gave them time off work to go to the bankruptcy appointment. I think then key is being honest. The clause gives the employer the right not an obligation.

Steve Thatcher
 
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