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<p><strong> </strong></p><p> </p><p>The Insolvency Service will consider the conduct
of the directors of City Link in connection with the management of the company. This
would include any issues associated with financial support offered by its owner or
by third parties.</p><p> </p><p> </p><p> </p><p>It is not uncommon that an insolvent
company has insufficient money to pay their creditors in full - including employees
- and that is why there are special arrangements for employees who are made redundant
on the insolvency of their employer. These provisions ensure employees receive a basic
minimum of the debts owed by the employer from the National Insurance Fund.</p><p>
</p><p> </p><p> </p><p>It is too early to provide an estimate of the cost of the payments
to former employees of City Link. However, I can confirm that there are statutory
limits on these payments, such as the £464 cap on a week’s pay.</p><p> </p>
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