can they can terminate the contract ?

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reynold.s

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Post by reynold.s » Sat Jun 05, 2010 9:31 am
I have been offered a new job and i am about to enter in to an iva agreement probably before i start my new job.

I have received an offer of employment but there is a clause that states
"The Employment shall be subject to termination by the company by summary notice if the employee becomes bankrupt or had an interim order made against him or her under the insolvency act 1986 or compounded with his / her creditors generally" does this clause mean that if they discover i am in an IVA while employed by them that they can terminate the contract ?
 
 

MelanieGiles

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Post by MelanieGiles » Sat Jun 05, 2010 10:13 am
Unfortunately yes - what type of work do you do which requires such harsh terms if their employees fall into financial difficulty?
Regards, Melanie Giles, Insolvency Practitioner
 
 

Julie

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Post by Julie » Sat Jun 05, 2010 4:34 pm
Given that the clause exists, then you should disclose your intention of an IVA. They may not withdraw the job offer, but better to be honest.

I'd be interested on what type of work you're applying for - can you tell us?
 
 

DaisyM

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Post by DaisyM » Sat Jun 05, 2010 5:32 pm
Hi
I had the same clause in my contract of employment and I just rung them before signing it and checked with the head office as I was worried that if they found out some other way I would then get the sack. For the job that I was doing they just said it was fine but they needed a copy of my IVA Statement thing which they photocopied and all was fine. Then later on they asked everyone in the company to sign a financial disclosure form sop they could check everyones financial situation. So goo dthing I did come clean from the outset.
Its never as bad as you think. x
 
 

Julie

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Post by Julie » Sat Jun 05, 2010 5:50 pm
Thats great to hear Daisy! Thanks for sharing your experience, I hope reynold.s will have the same outcome.

I've yet to work for a company that wants me to include such a clause , but if I do, I will challenge it all the way!
 
 

DaisyM

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Post by DaisyM » Sun Jun 06, 2010 2:49 pm
hopefully they will do. I think it's better to get it out the way before you start because otherwise if your anything like me, you'll only worry that they will somehow find out. good luck anyway whatever happens
Its never as bad as you think. x
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