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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 50202
Experience:  Qualified Employment Solicitor
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I am putting together an employment contract new

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Hi. I am putting together an employment contract for a new employee at my garage. His role will be as a MOT Tester and Garage Manager. I want to put a clause in the contract that states that if he were to be subject to personal bankruptcy, his role would be reduced to that of solely a MOT tester, and his managerial duties would cease (I understand that a bankrupt individual is not allowed by law to manage or promote a Ltd. company). In accordance with this, if his managerial duties were to cease, his salary would be reduced. Is there a standard clause I can use for this, if not can you please help me with the wording? Thank you
Hello what is the reasoning behind such a clause?
Customer: replied 1 year ago.
Hi, Because as I understand it, a bankrupt individual can not undertake managerial responsibilities for a Ltd. company. As a small Ltd company, if this were to happen, I would need to employ another manager to run the garage, at cost to the company. I therefore would like some form of protection for the company against this
You can use the following wording: “In the event that the Employee is declared bankrupt or makes any arrangement with or for the benefit of his creditors or has a county court administration order made against him under the County Court Act 1984, the Company reserves the right to demote the Employee to the role of MOT Tester and remove any managerial responsibilities. The Employee’s pay and benefits will also be amended to reflect those of the new role.” I hope this has answered your query. I would be grateful if you could please take a second to leave a positive rating (3, 4 or 5 stars) as that is an important part of our process and recognises the time I have spent assisting you. If you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
Customer: replied 1 year ago.
Great thanks Ben - appreciate your help. I will make sure I complete the rating
many thanks
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