If an employer goes out of business, what are its duties towards employees?

Although most forms of insolvency will terminate contracts of employment, with the automatic effect of dismissing employees by reason of redundancy, this is not always the case. Employers should always seek expert advice from a solicitor or insolvency practitioner to check the effect that their particular insolvency may have on existing employment contracts. The same goes for consultation before dismissal, as an insolvent employer may not be absolved of the necessity to consult.