Did you see that video saying if the company folds, you’re finished? Let’s talk about what they didn’t tell you.

There’s a wave of HR creators on TikTok warning employees that if the company you’re suing goes into liquidation, your claim is dead and you’ll never see a penny. And while there’s a grain of truth in that, the way it’s presented leaves people feeling hopeless — as if employers can simply vanish and walk away untouched.

But that’s not the full picture. And it’s definitely not the law.

Let’s break down what those videos don’t tell you.

1. Liquidation doesn’t erase the wrongdoing

In the Sowden v Optimal Recruitment case, the employer tried a classic evasion tactic: switching between company names to argue the claimant sued the “wrong entity.” It was designed to confuse, delay, and derail the claim.

The Tribunal didn’t buy it.

They looked past the paperwork and focused on substance over form. They substituted the correct entity and allowed the claim to proceed. The message was clear:

You cannot escape justice by playing corporate hide‑and‑seek.

2. The real danger is enforcement — not the claim itself

If you sue only the company and it folds with no assets, your award becomes an unsecured debt. That’s where many HR creators stop the story.

But here’s what they leave out…

3. The Equality Act gives you a powerful shield

Under discrimination law, you can sue:

• the company

• the individuals who carried out the discriminatory acts

And when you do that, something crucial happens:

Individual liability survives liquidation.   HR1, HR2, the manager, the director — they remain personally responsible for the award.

This is the Multi‑Respondent Strategy, and it’s the reason your claim doesn’t die when the company does.

4. Sowden is your precedent

If the employer argues you sued the “wrong version” of them, you can rely on Sowden to ask the Tribunal to:

• substitute the correct entity

• join the new entity

• prevent the claim from collapsing

Tribunals are increasingly alert to companies playing name‑switching games.

5. You have more tools than you think

Your slides show the full armoury:

• blocking strike‑off attempts

• identifying shadow directors

• using TUPE to follow the business

• piercing the corporate veil in sham cases

• monitoring Companies House

• and the Insolvency Fund as a last resort

This is not a hopeless situation. It’s a strategic one.

The truth is simple:

Liquidation is a tactic. But you have counter‑tactics.

And when you combine the Sowden precedent with the Multi‑Respondent Strategy, you’re not powerless — you’re protected.

Justice isn’t luck. It’s structure. It’s vigilance. It’s knowing the moves before they’re played.