If you suffered an injury at work and your employer has ceased trading, you may still be able to make a claim for compensation.
We are a claims management company that can help you make a personal injury claim. Call us free on 0800 470 0472
Can I Claim if my Employer has Ceased Trading?
Your employer owes you a legal duty of care and must take all reasonable measures to keep you safe from workplace accidents and injuries. If they breach their duties and you suffer harm, you are entitled to make an accident at work claim against them.
However, there are situations where an employer may have ceased trading or gone into liquidation by the time you become aware of your injuries or decide to start your claim. Even so, it may still be possible to secure compensation for your pain, suffering and financial losses, often through the employer’s insurance policy.
Please read on to find out how you could still claim if your employer has ceased trading and how a specialist solicitor can help you secure the compensation you deserve.
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What does it mean when an employer has ceased trading?
When an employer has ceased trading, it means that their company has stopped its business operations and activities, such as selling products, providing services and employing staff.
A company may cease trading for several reasons, including:
- Financial difficulties or insolvency.
- Voluntary closure by the business owner.
- Merging with or being taken over by another company.
- Going into liquidation or administration.
It’s important to note that when an employer ceases trading, it does not mean that their business has been completely dissolved. Although it is not doing any work, the business often remains a legal entity registered with Companies House.
Companies that have gone through a formal insolvency process typically have an appointed liquidator or administrator to manage their affairs. They will handle any outstanding debts, including personal injury claims made by former employees.
How do I check the status of a company?
If you want to make a claim against a former employer, you can check the company’s status through Companies House, the official register of UK businesses. To do this, you must:
- Visit the Companies House website.
- Enter the company’s name or its company registration number (CRN) into the search bar.
- Click search and review the company’s profile, which will include its registration status, registered office address, and filing history.
You can also use the Employers’ Liability Tracing Office (ELTO), a non-profit organisation that helps people who want to make a compensation claim quickly find information about their employer.
If your employer was a sole trader or a partnership, you can search their status by typing their name or the company’s name into the Individual Insolvency Register.
Can I make a personal injury claim against my employer?
To find out if you can make a workplace accident claim, all you need to do is get in touch with a personal injury solicitor. They will be able to verify whether:
- Your employer owed you a legal duty of care, which they breached.
- Their negligence directly caused or contributed to the harm you suffered.
- You are within the legal time limit to start a claim (usually three years from the accident date or the date you became aware of an injury or illness).
All employers have a legal duty of care towards their employees under the Health and Safety at Work Act 1974. This can be breached in various ways, such as failing to provide adequate training and protective equipment, or failing to maintain equipment and machinery properly.
If your employer fails in any of their duties and you suffer an injury as a result, you may be able to claim compensation.
Can I still claim if my employer has ceased trading?
Yes. You can usually still make a claim even if your employer is no longer trading, depending on the circumstances of your case. Such claims are often related to injuries that develop over time due to long-term exposure to hazards, such as asbestos-related diseases, industrial deafness or dermatitis.
Since 1972, most employers have been legally required to hold valid Employers’ Liability (EL) insurance. If your employer was insured at the time of your injury, their insurance provider will typically be responsible for covering your compensation claim, even if the company has ceased trading.
If both your employer and their former insurer are untraceable, it may not be possible to proceed with a claim against them directly. However, you may have other options for obtaining compensation, such as government schemes like Industrial Injuries Disablement Benefit (IIDB).
How do I claim against an employer who has ceased trading?
A claim against an employer who has ceased trading will follow the same basic steps as any other personal injury claim:
- Your solicitor will check the company’s status and track your employer’s insurer if the company no longer exists.
- If you can proceed, they will help you gather supporting evidence and submit your claim to the relevant party (your employer, their administrator, liquidator or insurer).
- If liability is admitted, your solicitor will engage in negotiations with the defendant. If not, they will prepare to take your case to court.
- If you win the claim, you will typically receive your compensation within four weeks.
Who will pay my compensation if the company no longer exists?
Your solicitor can employ several strategies when pursuing a claim against a company that has stopped trading or is in liquidation:
- The most effective and straightforward strategy is often to trace the company’s insurer and claim compensation from them.
- Sometimes, the owner or the director of a company can be held personally liable for compensation, particularly in cases of gross negligence.
- If the company is in administration, claims can occasionally be pursued through the appointed administrator.
- It may also be possible to claim compensation from other parties related to the defunct company, such as contractors, site owners or parent companies.
- If all other routes fail, certain government schemes, such as the IIDB, may provide compensation for some people.
The status of the company (whether it has ceased trading, is in administration or is undergoing liquidation) will determine the best approach to your claim.
How long do I have to claim compensation from an employer that has ceased trading?
The legal time limit to start a claim is generally three years from the date of injury or the date of knowledge (when your injuries were diagnosed and linked to your job), subject to some exceptions.
No matter your circumstances, it is essential to seek legal advice as soon as possible if you decide to make a claim for a workplace injury. Gathering evidence and tracing your former employer can become even more difficult over time. You can read more about court time limits for personal injury claims in the Limitation Act 1980.
Start your claim today!
If you want to claim compensation for an injury at work, our specialist solicitors are ready to offer you a free case assessment and advise you on your legal options.
To get started, call 0800 470 0472 or request a call back, and you will receive a free initial consultation. An experienced solicitor will explain how you can still make a claim if your employer has ceased trading.
