Company insolvency is a risk for those working in the cultural sector due, not least, to the high number of small operators. Whilst the law provides some remedies, its provisions are insufficient to ensure that crew will get paid when companies experience financial trouble.

We encourage members to learn more about what insolvency is and to understand the steps available to them in the event that their employer is either declared insolvent or goes into administration. 

Working with Thompsons Solicitors, BECTU has produced two guidance documents:

  • Guide to Insolvency, and
  • Insolvency and Pre-Pack Companies.

Guide to Insolvency

The Guide to Insolvency provides a short introduction to the area under the following headings: What is insolvency? What is liquidiation? What happens when a compulsory liquidation order is made? What is administration?

Insolvency and Pre-Pack Companies

Insolvency and Pre-Pack Companies explains the facility for pre-pack administration which can be abused by companies in trouble to avoid their obligations to creditors; the guidance includes a checklist for creditors faced with a pre-pack administration and a standard letter for members who need to write to administrators.

BECTU members should log-in to access both documents. Members experiencing difficulties with insolvency or adminstration should seek the assistance of their full-time official as soon as issues arise. 

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