Can I Claim If My Employer Has Ceased Trading?

By Joanne Jeffries. Last Updated 28th June 2022. Welcome to our guide which answers the questions ‘Can I claim if my employer has ceased trading?’ and ‘What does ceased trading mean for my claim?’ Below, we explain how to find out if a company has ceased trading, and answer questions such as “What is the meaning of ceased trading?’. As well as explaining the ceased trading meaning, we answer the important question of  ‘Can you sue a company that has ceased trading?’ We discuss personal injury claims against UK companies in administration in depth. If you’re suing a limited company that no longer exists, this guide could be useful.

Can You Sue An Employer That Has Ceased Trading?

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What does ceased trading mean for a claim?

If you suffer an injury in a workplace accident that was your employer’s fault, or if you have been diagnosed with a long-term illness or industrial disease that was caused by health hazards in the workplace, you could be entitled to sue your employer for compensation. However, in some cases, your employer may have gone out of business. They may have ceased trading or gone into administration or liquidation.

This situation may be particularly a problem for those who are attempting to make a claim for a work-related illness, as the illness may only be diagnosed years after they have parted with the employer. In a situation such as this, you could be left wondering, ‘Can I claim if my employer has ceased trading?’

What does ceased training mean for my compensation claim?

This article is here to explain that, potentially, you can claim injury compensation. You could still have the right to seek compensation from an employer that is no longer operating. In this situation, the way you would do so would be different than under normal circumstances, and the main purpose of this article is to help you to understand how the process of doing this works.

Accident Claims can offer you advice, not just through this page and others like it, but also through our team of friendly experts They can provide you with a free consultation on your situation. We also have a team of solicitors who work with us. They can take on cases and could represent you in a No Win No Fee compensation claim.

Could You Sue Your Employer?

If you would like to speak to our team about whether or not you could be entitled to make a compensation claim, then call 0800 073 8801. You could also reach our advice team by messaging us through the live chat feature at the bottom of the screen. Otherwise, you could request that our team contacts you first, by filling in your contact details on this page.

Select A Section

  1. A Guide On Claims If My Employer Has Ceased Trading
  2. What Is A Company That Has Ceased Trading?
  3. What Are The Different Ways A Company Could Cease Trading?
  4. How To Check The Status Of A Company
  5. Can You Claim If Your Employer Has Ceased Trading?
  6. What Are Your Rights If Your Employer Is Insolvent?
  7. Calculating Claims Against An Employer Who Has Ceased Trading 
  8. Special Damages For Work-Related Accident Claims
  9. No Win No Fee Claims Against An Employer Who Has Ceased Trading
  10. Talk To An Expert About How To Sue An Employer
  11. Essential References
  12. FAQs On Claims Against Companies No Longer Trading

A Guide On Claims If My Employer Has Ceased Trading

Trying to make a claim for compensation against an employer for a work injury or illness can seem complicated when the business has ceased trading or has been dissolved. However, you could still be able to make a claim for compensation if your former employer is no longer in business because they’ve stopped trading.

In this guide, we include information on:

  • Some of the reasons why a business might cease trading.
  • How the different processes of folding a business work when it comes to a limited company, statutory notice pay and national insurance.
  • How the process of making a claim against a former employer that is no longer in business works and whether there’s a government service that could help.
  • What party or organisation you would claim against in order to get your compensation, whether for unpaid wages or injury compensation.
  • How to check the status of your former employer to see whether or not it is still trading, or if it is in danger of becoming insolvent and going out of business.
  • What other monies you could claim and where you would claim them from if your employer is out of business.
  • How potential compensation could be calculated.
  • A breakdown of the different types of compensation you could be entitled to claim.
  • A feedback form you can use to give us your email address for us to answer your questions

How we could help

This guide will also go into the details of some of the benefits of making a claim with Accident Claims solicitors, such as:

  • The free legal advice consultation we could offer you from our team of experts.
  • No WIn No Fee claims.

If you find yourself with unanswered questions, get in touch through our live chat or call us on the number at the top of the page. Our expert advisors are knowledgeable on how to sue an employer that has ceased trading.

What Is A Company That Has Ceased Trading?

To say that a company has ceased trading is the formal term for a company that has stopped business. Their employees may be laid off and the company’s assets are sold.

A business could be forced to close down due to a number of reasons including becoming insolvent (unable to pay debts owed). If it happens voluntarily, it may be because the director retires or the company no longer serves a purpose, for example.

There are a number of different ways in which the shutting down of a company could play out, which we will explain in the next few sections.

What Are The Different Ways A Company Could Cease Trading?

There are many ways in which a company could cease trading. It could:

  • Go into administration.
  • Go into liquidation.
  • Be dissolved.

The next three sub-sections will go into what the differences are between administration, liquidation and company dissolution. We’ll also look at what is involved in these different processes and why they occur.

What happens when a company goes into administration?

If a company has gone into administration, it means that it is insolvent and is at risk of being able to remain operational in business.

When a business is in administration, professionals known as licensed insolvency practitioners will be brought in to try to rescue the company. Their role will involve leveraging the company’s remaining assets in order to repay the company’s creditors. They may choose to sell the company’s assets (whether tangible or intangible) in order to raise the capital needed to pay back the company’s debts.

What happens when a company goes into liquidation?

Liquidation is a similar process to administration, in that the management will be taken over by liquidators. They will set about selling all the company’s assets that can be capitalised in order to settle accounts and reach agreements and repayments with the company’s creditors.

However, the difference is that under administration, the purpose of this exercise is to pay back the company’s debts in order to allow it to continue operating. In liquidation, the goal is to attempt to pay back the company’s debts and subsequently wrap up the business.

What happens when a company is dissolved?

When a company is dissolved, either following its liquidation or following a forcible dissolution due to its failure to comply with its legal obligation, the company effectively ceases to exist. Its name is struck off the register, and its assets transfer to the Crown. This means that anything that the company still owns, such as the below, effectively becomes the property of the state.

  • Land
  • Bank accounts
  • Tax refunds, insurance policies, or monies owed to it by court orders
  • Trademarks
  • Copyrights
  • Patents
  • Monies owed to the company through mortgage policies
  • Monies owed to the company through assets or outstanding agreements

If you’d like to discuss whether you could sue your employer even though they’ve ceased trading, continue reading or get in touch today.

How To Check The Status Of A Company?

If you are considering making a compensation claim against a former employer, but you aren’t sure whether or not the company is still in business, there are a number of different ways you could find out whether or not the company is still in business. Knowing this could allow you to understand whether you could make a claim against them directly, or (if has ceased trading) use other methods of seeking compensation.

How to find out if a company has ceased trading

The first place you could check is the Companies House, the government register of listed businesses. You can access the website and put in a search for the company you are looking for. This can show you the details of a company, whether it is still trading or if it has gone into liquidation and has been stuck off.

In some cases, you may be worried that a company is going into insolvency, and is in danger of possibly being wound up by the time you are able to complete a claim. You could check in the London Gazette to make sure that it isn’t being listed as being in potential financial danger.

If the company is under provisional liquidation, meaning it has been given final notice from the government to pay off its debts before being liquidated, it will be listed on the government’s insolvency directory. Individual bankruptcy or insolvency would be listed on the government’s Individual Insolvency Register.

Can You Claim If Your Employer Has Ceased Trading?

If your employer has ceased trading altogether, you could still have the right to make a claim. However, instead of making the claim against the employer itself, you could instead make your claim against the employer’s insurance.

You can find out who your employer’s insurers were by looking at information from the Employers’ Liability Tracing Office (ELTO). You can access the Employers’ Liability Tracing Office website to find out who your employer’s insurers were.

If you are claiming for an injury that you suffered while working for the company, then you should try to find the insurer that was covering the employer at the time the injury occurred. If you are seeking compensation for a work-related illness that has developed as a result of the conditions you worked under while employed at numerous companies, you will need to identify all of the different insurance companies.

Should you have queries about any of the above, a solicitor could help you. Our expert advisors could also help. To get in touch, call the number at the top of the page.

Source: https://www.elto.org.uk/home/

What Are Your Rights If Your Employer Is Insolvent?

If your employer has been made insolvent, then you may find yourself being made redundant.

Under certain circumstances you may be entitled to approach the government and claim for:

  • A redundancy payment
  • Arrears of pay
  • Holiday pay
  • Notice days worked but not paid

This is, of course, assuming that you have not been provided with these things already by your employer prior to the business’s closure.  You could be entitled to claim these if you were transferred to another entity following your employer’s insolvency. Or perhaps you continued working for your employer when they were declared insolvent. But you couldn’t claim if you were transferred before insolvency proceedings began.

Knowing whether you can sue an employer that has ceased trading can be tricky, but our advisors can help. Get in touch if you’d like to ask questions.

Calculating Claims Against An Employer Who Has Ceased Trading

When it comes to working out compensation, no two claims are exactly the same. The amount that you could be entitled to depends on a number of different factors.

When considering your injuries or illness, for example, valuation will involve the:

  • Severity of the injury.
  • Extent to which your ability to live a normal life has been affected.
  • Kind of treatment and length of recovery you have required.
  • Extent to which you currently, and will in the future, experience health problems or disability.

Due to these nuances, you may struggle to get an accurate figure for the amount of compensation you could receive until you have spoken to a lawyer or one of our advisors. However, you could find the below table useful. It shows estimates of the amount of compensation you could receive for some of the different types of injuries and illnesses that could be caused by your employer’s negligence. It is based on figures produced by the Judicial College.

InjuryCommentsAmount
Lung Disease Disease in a young person, causing disability and a likelihood of early death.£100,670 to £135,920
Lung DiseaseLung cancer in an older person.£70,030 to £97,330
Lung DiseaseDisease such as emphysema that causes worsening lung function. £54,830 to £70,030
Lung DiseaseBreathing difficulties and sensitivity to smokey environments and require the use of an inhaler.£31,310 to £54,830
Lung DiseaseBronchitis and wheezing.£20,800 to £31,310
Lung DiseaseSlight breathlessness with recovery after a few years.£10,640 to £20,800
Lung DiseaseTemporary aggravation of pre-existing health issues such as bronchitis. £2,200 to £5,320
Asbestos-Related DiseaseMesothelioma causing extreme pain and impairing quality of life.£63,650 to £114,460
AsthmaSevere, permanent and disabling asthma.£43,060 to £65,740
AsthmaMild asthma, bronchitis, colds, and chest problems.Up to £5,150

Special Damages For Work-Related Accident Claims

You could claim compensation for the money you have lost as a result of an injury. This type of compensation is referred to as special damages. And you can claim it on top of the compensation for your injury, which is known as general damages. (Please see the above section to get an understanding of general damages.)

Could You Sue Your Employer And Claim Special Damages?

Special damages can be claimed for money that you have spent, money that you have missed out on but would otherwise have earned, and money that has already been spent but has now been wasted because of the injury caused by your employer’s negligence. Listed below are some of the financial losses you could claim as special damages providing they’re caused by your injury.

  • Loss of income. If you take time off work to recover, or if you have to change jobs because of your injury, you could be entitled to claim compensation for loss of earnings. You could also be compensated for any bonuses or pay rises that you miss out on as a result of the injury. You can evidence these claims by providing payslips and copies of your employment contract.
  • Medical treatment. The treatment you receive may require you to spend money. Prescriptions, for example, could fall under this category. Produce evidence such as receipts or invoices in order to back up a claim.
  • Transport costs. An injury could cause you to spend time travelling back and forth to hospitals for your treatment or rehabilitation. If you provide tickets as proof of your expenditure on transport costs, you could be entitled to claim this money back.
  • Other financial losses. If you have had to cancel plans or events that you have already spent money on, such as a holiday, wedding or sports event, you could be entitled to claim back the costs. Provide receipts, tickets and invoices to serve as proof for this part of your claim.

No Win No Fee Claims Against An Employer Who Has Ceased Trading

In this part of our guide to how to sue an employer that has ceased trading, we look at the option of using the services of a No Win No Fee solicitor to claim.

Making a claim can involve taking on the costs of legal fees in order to hire a lawyer. This could be off-putting to some people who might otherwise be eligible to claim, as they might fear being left with a large bill to add to their money worries if they don’t win compensation.

Accident Claims does not want people who have a valid reason to claim to miss out because of financial barriers. That is why all of the solicitors that work with us offer their clients No Win No Fee agreements.

In No Win No Fee agreements, upfront legal fees are waived and, instead, the solicitor would receive a small portion of the claimant’s compensation as a success fee. That is, only if the claim is successful.

This means that the solicitor’s payment is conditional. If the claim is not successful, you would not have to pay the solicitor’s fee.

Our solicitors offer their services on a No Win No Fee basis. If you’d like to discuss your claim and get in touch with an advisor, use any of the methods below. If you have a valid claim, they could put you in touch with a No Win No Fee solicitor.

Talk To An Expert About How To Sue An Employer

If you would like to speak to an expert about any of the issues you have read about in this guide, or making an accident at work claim then you can search our website for work injury information or speak to us by:

Our advisors are here for you whenever you need to call: night or day. They offer free legal advice with no obligation for you to proceed with our services.

Essential References

Accident at work claims

Making an accident at work claim if you are self employed

Your legal rights after you have had an accident at work

Other Useful Compensation Guides

FAQs On Claims Against Companies No Longer Trading

Can You Sue A Company That Has Ceased Trading?

You could be entitled to claim compensation if your employer is no longer trading. The claim may be made against the company’s former insurer.

What happens if a company ceases to trade?

If a company is temporarily ceasing trade, then it can be registered as dormant or temporarily out of business. If a company is being wound up, then all assets are sold, employees may be made redundant. The company’s name is struck from the Companies House register.

Can I Claim If My Employer Has Ceased Trading As An Ex Employee?

Even if you’d left your employer’s place of work before they ceased trading, you could still make a workplace injury claim against them. You can claim compensation for your injuries so long as they occurred when the employer was trading. You would need to be within the personal injury claims time limit. However the process of getting compensation might be longer.

What accidents are common in the workplace?

Common accidents in the workplace that cause injuries can be found with the HSE’s work injury statistics. The figures for 2020/21 show that the highest cause of such accidents were slips trips and falls.  You can see the breakdown below.can you sue a company that has ceased trading? [h2/h3] how to find out if a company has ceased trading [h2/h3] what is the meaning of ceased trading? [h2/h3]

 

Can I claim against my old employer for stress?

If there was a valid insurance policy in place while you worked at your employer and you could provide evidence that your ex-employer was at fault for your stress, you could potentially claim against the policy that was in place at the time the stress occurred. However, you would need to ensure you were claiming within the limitation period for your claim.

How could I prove my injuries?

You’d have to see an independent medic to get independent medical evidence of your injuries. During your appointment with them, they would ask questions and examine your injuries. They may need to refer back to your past medical notes too. Then they would create a medical report which could be used to verify the injuries and your prognosis.

What is the meaning of ceased trading?

The meaning of ceased trading in layman’s terms would be a company that had stopped operating. As we have mentioned, in some cases you could still claim compensation from an ex-employer.

You would have to be able to prove that their negligent breach of their duty of care towards you had caused your injuries. If the company that had ceased trading still had insurance in place when you were injured, the policy could still payout on your claim.

When can you sue a company that has ceased trading?

You can sue a company that has ceased trading in many cases. Employers are required to have liability insurance, which could pay out on your claim if the policy was live when you had your accident.

However, as with any personal injury claim, you would need to prove that your injuries were due to your employer’s negligent breach of their duty of care towards you.

Can you advise how to find out if a company has ceased trading?

We could advise you on how to find out if a company has ceased trading. As we have explained earlier on in this guide, you could check Companies House yourself, to find this out, however.

If you do find that a company you are considering suing has ceased trading, this does not mean you could not make a claim. In some cases, you would still be able to claim compensation against the insurance your ex-employer took out.

What does ceased trading mean if a business still has debts?

If a company with debts ceased trading, it may mean they could not afford to pay their suppliers as well as deal with various other monetary issues. In cases where you’re making a potential claim against your employer whose company has ceased trading, it may not always be possible. 

However, for more information on the meaning of ceased training and what this means for your potential claim, call us on the number at the top of the page.

What does ceased trading mean if a company is solvent?

If a solvent company wants to declare it has ceased trading, meaning that it is no longer operational, it must ensure debts are paid off. Then, they can declare it dormant or dissolve it. 

What does ceased trading mean when it comes to collecting payments due?

If a company declares that it has ceased trading, and debts are owed to it under contract, debtors should still pay the company or the company that is in charge of closing the company down. 

I have further questions on the ceased trading meaning and how it could affect my claim – where can I get help?

We could help you if you are eligible to claim compensation for a company that has ceased trading, and there was an insurance policy in place at the time of the accident. Please call our team to discuss your case, and we will do all that we can to assist you.

Who pays the compensation for companies in administration?

When companies are in administration and compensation claims are made against them, who pays the compensation will depend. If a policy that was in place at the time the accident occurred is still valid, the insurance could still cover the claim. For more information, call our team.

How many companies are in administration in the UK?

When it comes to how many companies are in administration in the UK, we can look to the government statistics for guidance. According to their report for 2021, 1 in every 304 active companies went into liquidation in 2021. Unfortunately, we cannot find statistics relating to personal injury claims against UK companies in administration. 

I’m thinking of suing a limited company that no longer exists – where do I start?

If you’re thinking of suing a limited company that no longer exists, you could start by calling our team. We could assess your chances of making successful personal injury claims against UK companies in administration, or that have been dissolved. We could provide you with a solicitor to assist with your claim if we determine that your claim is valid and has a chance of success.

When you call us, we’ll need to ask you questions about the accident you were injured in. We will also ask questions about the company you’re intending on taking action against. This can help provide an understanding of whether you’re eligible to seek compensation.

Thank you for reading our guide to how to sue an employer that has ceased trading. Hopefully we’ve answered the question of ‘Can I Claim If My Employer Has Ceased Trading?’