Bankruptcy clause

As a general rule, employees don’t have to tell you about their bankruptcy unless they’re contractually obliged to do so.

Express clause

Although there might be exceptions for some industries and roles, employees aren’t generally obliged to inform you of their bankruptcy unless your employment contracts contain an express clause requiring them to do so. This is therefore the purpose of our Bankruptcy Clause. It provides for the employee to inform you immediately if they’re made bankrupt, including letting you know the date of the bankruptcy order and the identity and contact details of their trustee in bankruptcy. It also requires them to subsequently inform you of the date of their discharge from bankruptcy. Do only use our clause though for directors and financial and similar regulated roles. This is because, with some exceptions, you can continue to employ bankrupt employees, and for most roles the bankruptcy won’t have any implications for the employment relationship, and so you don’t really need to know about it.