Although no further details of the companies involved were disclosed, the figures could suggest problems with phoenixing where company owners make their business insolvent to avoid paying tribunal awards or other penalties, only to set up a new, almost identical company shortly afterwards.
In the current climate, where we hear of town centres being depleted of their shops and pubs at an alarming rate, there will be very many genuine insolvency situations which mean tribunal awards go unpaid, said Croner associate director Paul Holcroft. However, with the possibility that phoenixing is contributing to that number, employers may well be intentionally circumventing the system.
Without detailed analysis, it is difficult to tell which are …
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