UK Employment Law
UK Employment Law Questions Answered by Verified Experts
At the moment you aren't trading whilst insolvent and you have two months worth of overheads. There is no duty on you to make employees redundant but if the money does run out you cannot trade as you would be doing so whilst insolvent. The important test is can you pay your debts AS THEY FALL DUE. If yes you can trade, if not, you can't. If you run out of money and don't get new contracts in the interim you will have to cease trading. The employees may have to apply to the state via the liquidator for redundancy payments. At the moment, however, there is no redundancy liability and you don't have to budget for it anyway. I hope that helps.