Can employees vote in a Company Voluntary Arrangement?

Employees are not generally involved in voting on a CVA unless they are also creditors of the company. For example, if wages, redundancy pay, or expense reimbursements are owed, then employees are considered unsecured creditors and can take part in the process. In practice, trade creditors, landlords, and HMRC are usually the largest groups voting on CVA proposals. The role of employees is therefore more indirect, but still significant, because the arrangement is often designed to preserve jobs by ensuring the company’s survival. Employees benefit if the CVA succeeds because the business can continue trading, but they also face uncertainty if redundancies form part of the restructuring plan. Directors should keep employees informed about the CVA process to maintain morale and reduce the risk of losing key staff. While employees may not have the largest voting power, their inclusion as creditors ensures their rights are formally recognized within the insolvency framework.